Second wave of Covid-19 may be afoot, ways for the payment industry to prepare

With businesses steal dealing with the impact of the recent hit of the coronavirus pandemic, rumors of a second wave are starting to worry market participants.

The first lockdown posed unique challenges for businesses but it also outlined alternative ways for the payments industry market participants to deal with the situation and adapt.

ConnectPay CEO, Marius Galdikas, recently laid out a few insights on how payment industry businesses can stay afloat and retain traction in case of a second wave.

Partnerships with fintech firms

One way for traditional businesses to adapt to a potential second hit would be to form partnerships with fintech companies and work out timely innovative solutions. There is plenty of room for growth in the fintech industry.

Marius Galdikas said:

Marius Galdikas, ConnectPay

Marius Galdikas
Source: LinkedIn

Fintech industry pivots and innovates faster, which could turn into a competitive advantage for business with the right payment provider. In times of crisis, such an advantage could make a difference against other market players. With more safeguards in place, businesses can benefit even more once the crisis abates.

With the introduction of social distancing and later the lockdown, banks and payment processors were under pressure with the growing risks of phishing, scams, etc. Partnerships with fintech companies can help with the improvement and development of the security.

Delayed payment

The option for delayed payment allows businesses to provide their customers with flexibility and at the same time retaining some guarantee of funds.

Galdikas explained:

In economies shocked by lockdowns, the option for delayed payments may buy more time for businesses. This can help establish trust between existing and future customers and allow vendors to maintain traction.

Marius Galdikas continued:

Having a wider range of payment options available will ultimately place vendors in a better position to serve their clients.

Second wave of Covid-19 may be afoot, ways to prepare

Contactless payments

Cashless and contactless payments have gained popularity recently as fast transactions became important for physical businesses looking to set in place social distancing protocols. Smooth contactless payments can be essential in a potential second wave.

Galdikas stated:

No-contact payments gained newly-found importance in the context of the pandemic and will remain highly relevant, at least until the situation dials down. Some may not have been giving the proper attention to the subject before, but with the threat of a potential second wave, having certain measures in place to provide a smooth contactless experience is paramount.

Streamlining e-commerce

The lockdown stimulated online purchases and their growth with physical businesses closed. However, there still work on making smoother relationship between consumers and vendors and improving the flexibility of payment solutions.

Galdikas pointed out:

Online merchants will have to offer faster and more secure solutions in these challenging times, to retain customers. Convenience is key, for both merchants, seeking to diversify payment options, and their customers, seeking flexibility and overall better shopping experience.

He added:

That’s why we aim to provide new payment templates during the COVID-19 crisis, and in the post-crisis industry as well. The current situation has exposed some of the shortcomings in the industry. Thus, this is as good a time as any to reflect upon them and innovate accordingly.

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