“The common denominator of almost all post-pandemic behavioral shifts is the growing importance of digital payments,” said Paul Fabara, executive vice president and chief risk officer at Visa. has a global network processing an estimated $13 trillion transaction value in the last year.
“Covid has forced a growing capital market to accelerate dramatically,” said Fabara. According to the report of World Bank Global Findex Database. That figure includes 71% of adults in developing countries. In high-income economies, nearly 95% of adults have made or received digital payments by 2021. In India, 80 million adults have made their first digital payment in pandemic period; in China, 100 million.
Scammers are known for their money and their online activities are expanding right along with the growth of digital transactions. Annual losses due to cybercrime in the US nearly doubled from 2019 to 2021, from $3.5 billion to $6.9 billion, according to the report. FBI Internet Crime Report for 2021. Fortifying the cyberspace against theft and fraud has always been urgent, and the post-pandemic trading boom is increasing the problem.
Promoting digital transactions
Aaron Press, research director for worldwide payments strategies at IDC, who tracks the growth and adoption of real-time payments, says business-to-business customers are starting to emphasize seamless real-time transactions they expect as consumers. “If you think about how you shop online for personal things or pay friends with a mobile-to-mobile app, those expectations are finding their way into the environment,” he said. business school.
End-to-end digital transactions are here to stay. An MIT Technology Review Insights survey of global business leaders shows high interest in digital payments technology across all types and sizes of businesses. Although 36% of respondents are just getting started with digital payments, 43% expect to expand their services over the next 18 months and many are venturing into cross-border transactions (37 %) and cryptocurrencies (18%).
What drives businesses to digital payments? The largest survey response rate, 70%, shows that businesses prioritize improving customer experience by providing multiple payment options and saving customers time. Respondents expect the benefits of improved operations (48%) and reduced handling costs (37%). Many people want expanded options for guaranteed payment (36%) and personalized offers for customers (35%).
Press said: “Digital payments are more efficient and reduce errors significantly.
This content is produced by Insights, the custom content arm of MIT Technology Review. It was not written by the editorial board of the MIT Technology Review.