As the World Health Organization (WHO) issued an international notification to make sure that anything considered as any sort of risk of infection is as such, the focus of this article will be on the payments. Cryptocurrencies like Bitcoin and Ethereum are set to benefit from this as part of a niche that was left on the table by credit and debit cards.
What is payment volume?
Payment volume is the number of “transactions” that happen every year. For example, if you own a retail establishment with $1,000,000-$2,000,000 in annual revenue and six months ago your payment volume was 1,100 but now it’s down to 800, then your payment volume has lost 100 transactions. More often than not though, journal entries will adjust the balance appropriately during the same time frame.
Companies and industries that use payments
Here’s the scenario: everyone in your company is sick and needs days off, while hundreds of customer orders also need to be filled. In other words, the perfect time for a disruption. That’s why it pays to have a backup plan in place for employees and customers alike. How could you handle how people pay at your business?
Impact of the epidemic on payments
With so many people worried about contracting measles, there’s been a noticeable decline in debit and credit card use. For example, the Oregonian reports that over 1,200 transactions at their business can’t be processed due to fear of spreading. This lack of card use has led to a decline in customer confidence and surprisingly increased costs for goods and services.
Bitcoin after Covid
The impact of the WannaCry Ransomware attacks on nation-states around the world has been understated but could have significant consequences for the future of mobile payments. There are emerging signs that politicians could allow or mandate methods of distributing money to citizens other than by card. The reality is that if every major bank is offline after a cyber security event banks should not expect public confidence in their payment systems to bounce back quickly. A number of disease-fighters, such as the Global Payment Satton Group and Multiple Government Corporation collaborate to coordinate research and policy to solve the epidemic. From the group’s forecast, it’s estimated that payment volumes will decline by ten percent per year as they promote products such as Covid, a vaccine against Ebola.
CryptoCurrency & Covid
Many financial professionals & mobile payment solution platform providing companies are speculating on the future of the global slowing economy forecast. One of the most popular subjects in the finance industry is the way cryptocurrencies will be affected. For example, if everyone was to panic and withdraw cash from their accounts to buy any item they deemed necessary, chances are that there would not be any cash availability. This means that banks would resort to funding themselves through loans, which in turn means increased interest rates for you and me!
“Trying to predict the future is never an exact science,” the proverb goes.
In this article, we.ve tried exploring what will happen to payments after the epidemic with a clear objective of anticipating risks and opportunities in that context. Unfortunately, our analysis does not end up in any crystal ball conclusions because it is difficult to put numbers on certain estimates. Nevertheless, we hope that the perspective of various experts increases our understanding of possible scenarios.