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How the Pandemic Forced the Cash Dependent Consumers to Use Virtual Payment Platforms

The coronavirus outbreak is promoting cashless to avoid potential hygiene issues around handling banknotes. Merchants are requesting customers to wear masks, maintain physical distancing and avoid the use of cash when possible. One of the consequences of the Covid-19 pandemic has been a surge in the use of contactless cards and mobile phones to make payments. Businesses has to address and initiate noncash transactions processed through digital channels to support their customers, maintain their business, reinforce their organization and play a positive role in the economy and community. Digital payments can support the social distancing measures and help reduce the spread of COVID-19 as it allows payment transactions to continue with the contactless payment. Cloudbanking provides businesses an innovative payment solution that are safe and trustworthy and improve cash flow by optimizing the way customer payments are collected. Thanks to the innovative digital technology which provides speed and ease contactless payments in order to avoid using cash and touching objects during the pandemic. ​

Since the start of the Covid-19 pandemic, there has been a discussion regarding cash as a mean that helps to spread the virus. Many governments around the world have encouraged people to use virtual credit card terminal rather than cash to help prevent the spread of the virus. Even though the earliest concerns regarding the risk of spreading the virus through cash has been played down, there is still a reluctance among customers to use cash. During the first quarter 2020, contactless card transactions increased by 40% globally. A trend that probably will continue to evolve. Digital wallet and virtual card terminal are being more popular in providing easier customer experience for point-of-sale and e-commerce payments by removing the need to enter details or PINs as a recurring payment service. Web payment solutions and internet credit card processing are making payment convenience with secure data and prevention of fraud. ​

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When People are slowly adjusting in the new normal by adopting virtual card and cashless payments over cash, there has always been a demand for increased safety and elimination of fraud. Adopting the latest technology, CloudBanking assures a secure data transactions and fraud protection. It provides a powerful subscription and recurring billing management tool to empower businesses of all sizes. ​

As an anecdotal evidence, there has been behavioral change from both consumer and merchant in purchasing behavior and payment preference. As a result, they reduce the use of cash and preferred contactless payment through virtual credit card terminal. Some even went as far as to indicate that they would not accept cash as their own concerns about hygiene. Powered with the latest technology, CloudBanking has been providing a payment solution for retail industry to manage POS transactions and credit card processing to accept any form of card payments such as credit cards, debit cards, and EMV-complaint cards. ​

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Card payments have witnessed a surge during the COVID-19 pandemic as ATM withdrawals in April were down 30 per cent from the month before and over 40 per cent lower than twelve months earlier, stated by, Michele Bullock, the Assistant Governor from Reserve Bank of Australia. The main reason behind this drop was of customer’s reluctance to handle cash. The increased use of online shopping, either through necessity or preference during the ‘stay at home’ period, seems likely to be a permanent shift. In response, many retailers have increased their online offerings and may even find that they can reduce their physical presence. The introduction of contactless payments has made it quicker and easier to make lower-value transactions by card, reducing further into the traditional domain of cash transactions. ​

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