Ever since the pandemic, many countries saw an increase in e-commerce activities. For example, Southeast Asia’s digital economy accelerated last year with US$100 billion due to the booming e-commerce sector. And they also saw 40 million new online users last year as compared to 100 million online users in a span of five years, according to the e-Conomy SEA Report 2020 by Google, Temasek, and Bain & Company. What this means is that 70% of the SEA region’s population now uses the internet. And within this group of online users, 1 out of 3 people are increasingly using digital services due to lockdown.
This report has shown that as more and more people start to utilise digital tools, consumer behaviour and buying patterns are no longer the same. 9 in 10 users across SEA stated that they will continue to use digital services post-COVID-19.
And even in Singapore, the government has been pushing for a cashless society by implementing more and more cashless payment options. From these figures, it is apparent that digital payment is being widely used throughout the world and it will continue to be that way.
Understanding digital payments
Digital payments involve cashless transactions between one or more participants. In other words, consumers can pay, send, receive and store money with just a tap on their phone screen as digital payments can be conducted over the internet and through mobile devices.
Why the increase in digital payments?
To meet the increasing demand of the tech-savvy economy, financial technology (Fintech) companies are progressively collaborating with various sectors of the economy to produce more mobile wallet solutions. Here’s why…
1. Better customer reach
We are seeing an increase in e-wallet users worldwide. According to Statista, there were 901.2 million e-wallet users globally in 2019 and 1.34 billion in 2020. And the number is expected to rise to 11% by the end of 2021, amounting to 1.5 billion. With more and more consumers using an e-wallet to make purchases, it’s only natural for businesses to be where their customers are.
2. Real-time payments
Fintech companies are continuously exploring new technologies to provide seamless and fast transactions as digital payments have made it easier for people to do business. With real-time payments, businesses can be there for their customers anytime and anywhere as digital payments allow for quick and accurate payment processes. With fast payments, businesses can look forward to more transactions every day.
3. Better user experience
With digital payments, customers have become more accustomed to convenient and highly interactive user experiences. And the payment is also seen as a customer experience, therefore, it requires personalisation and customisation. With transparency and plenty of convenient features, digital payments put customers in control. From their devices, customers can schedule payments, access payment history, and even monitor the status of their payments.
4. Better security
Which one is safer, paper or digital payments? If you still think paper transactions are much safer, do know that checks are by far the riskiest type of transaction as all the important data is written on the check for everyone to see. Digital payments, on the other hand, keep your data safe and out of anybody’s reach. Not to mention you can monitor your payment activity and flag suspicious transactions with digital payments.
5. Seamless international payments
With digital payment, individuals and businesses can easily make quick and seamless global transactions. This is particularly helpful for businesses looking to expand their global reach as people can transfer money from one country to another without any time or location constraints—this is where we come in! With TranSwap’s global money-transferring solution, you or your business can transcend borders.
Here at TranSwap, we believe that digital payment is, indeed, the future. It is a quicker, cheaper, more transparent and convenient option for everyone to make transactions, especially international ones. And if you are a small business owner who still hasn’t implemented digital payment solutions for your business, it’s never too late to go digital!
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