COVID-19 Forced Many Consumers to Switch Payment Providers

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The COVID-19 pandemic continues to make its mark on the financial sector. Slowly but surely, consumers are exploring different payment providers. A new report by Capgemini confirms brand loyalty is not much of a factor right now. 

Switching Payment Providers is the new Normal

No one can deny COVID-19 has highlighted many financial inefficiencies in the world today.

Not just for corporations, but consumers are facing some issues as well.

Solving these problems will not happen overnight, although progress is being made every day.

Comparing different payment providers and switching when necessary has become the new normal for many consumers. 

Capgemini’s new report shows 38% of consumers have experimented with different payment providers since April 2020. 

This is primarily due to COVID-19 restrictions forcing consumers to rethink shopping and transacting. 

For service providers, it is now crucial to accommodate the modern needs of their customers whenever possible.

Some will struggle to accelerate innovation, whereas others will thrive during this “chaos”.

What is interesting is how 30% of consumers now use Apple, Google, and Amazon financial products and services.

In addition, up to 50% of consumers have shifted their attention to challenger banks in the past few months.  

Due to governments emphasizing contactless payments, the use of cash has decreased slightly.

On the other hand, the number of digital wallets and applications being used notes exponential growth.

Despite this shift in payment providers, the need for global scalable solutions remains visible.

Addressing those concerns will require further collaboration between fintech and finance service providers.

The Capgemini report makes no mention of Bitcoin or other cryptocurrencies noting more momentum. 

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