News & Views - Savantor

COVID-19 - acceleration of trends in consumer behaviour

Friday, 16 October 2020

The recently issued Capgemini World Payments Report 2020 has underlined the continued migration from use of cash towards digital methods of payments, hastened even more by the circumstances caused by the COVID-19 pandemic. 

The findings of the report identify how non-traditional payment service providers are becoming more popular, with 30% of consumers choosing to use a ‘Big Tech’ company for payment services and 50% opting to use a challenger bank for payments. In addition, 38% of consumers apparently discovered a new payment provider during lockdown, with the possibility that they may decide to switch on an ongoing basis.

The environment generated by the COVID-19 crisis seems to have initiated a cross-generational shift towards digital channels and digital payment methods, such as contactless, digital wallets and QR codes, away from the more traditional methods of payment. During this period consumers appear to have been more open to trying different methods of payment: 41% of consumers who classified themselves as high cash users admitted to trying a contactless card; 35% who owned a card added it to a digital wallet; and 27% of customers experimented with QR code payments.

The findings indicate that the circumstances of the pandemic – increased online shopping from home; decreased acceptance of cash and increased use of contactless to avoid handling coins and notes; internet banking in preference to bank branch visits - have encouraged previously digitally non-savvy customers to consider new ways to pay. 

The effects of these consumer behavioural changes are now making themselves apparent. With the decline in cash usage the requirement for ATM’s has decreased. Only this month the Post Office announced that is to cut a third of its cash machines in the next 18 months with 600 ATMs to be shut by March 2022. The Royal Mint is not planning to make any new 2p or £2 coins over the next decade, due to the decrease in demand for coins.

The concern of moving away from cash too quickly has always been the impact upon the vulnerable and disadvantaged in society. New research released by the consumer group Which? revealed that thousands of people have been prevented from paying with cash since March – over 2,500 reported their problems to Which? Of those who did not have an alternative method of payment, 38% were attempting to pay for groceries and 17% were trying to buy medicine. 

A decade ago, cash was used in 6 out of 10 transactions but by 2019 it was used in less than 3 in 10. Between early March and mid-April the market demand for notes and coins is reported to have declined by 71%. The effect of the pandemic has been to accelerate trends and changes in payments into a much shorter timeframe than might have otherwise been anticipated.

Savantor Services

Savantor Services

Savantor services are tailored to Client needs based on our core service areas

Specialist Resourcing Payments Strategy Platform Transition Operational Efficiency
Savantor Services

Job Opportunities

Consulting and contracting roles in the payments, mobile and banking arena within the UK and across Europe

View more
Savantor Services

Savantor Views

Find out more from our Savantor brochures, MarketEye back copies and Industry opinion

Collateral Market Eye News & Views Sign Up to receive MarketEye

Client Quotes

Moneris Solutions

"Savantor did an outstanding job of the review and I received nothing but positive feedback on the interaction with our management team."

Jeff Guthri, COO - Moneris Solutions - Canada

Credit Risk Review for New Product Launch

"We needed expert help at short notice and Savantor were very impressive in their response and knowledge. The results were very clear and useful, enabling us to quickly make good progress on the next steps."

Sami Karhunen, Head of Business Intelligence and SME Sales - Point Transaction Systems Oy - Finland

Credit Card Launch

"Savantor's knowledge and experience were the key differentiators in selecting them and they contributed greatly to the success of the product launch and the effectiveness of the ongoing operational service."

Toine Schepers, Operations Director - Primeline - The Netherlands

Acquiring market insight and strategy review

"Savantor brought an independent perspective and valuable insight that enabled Rabobank to ratify options for delivery and future growth and make informed business decisions in support of our target business model. Having used Savantor on a number of strategic projects, we have no hesitation in recommending their services to others."

Evert R Fekkes, SVP Payment & Savings Services - Rabobank - Nederland

EMV Migration Planning

"It was a strategic imperative for the bank to be EMV compliant for our payment cards and the experience that Savantor brought to the company has proved to be invaluable."

Eddie Sweeney, Chief Technology Officer - AIB Bank - Ireland

Acquirer Risk Assessment

"The expertise provided by Savantor has greatly helped us evaluate our risk position and to take the right steps in managing our future risks. Strong, disciplined planning and an ongoing willingness to work closely with our staff played an enormous part in making this a very successful well-delivered project which will greatly help us in achieving our business goals."

Mark Healy, Chief Risk Officer - NEOVIA Financial - UK

Platform Selection

"Savantor's support in our platform selection process has enabled us to sustain our profitability and positioning for the future. Their advice and guidance was essential to our decision-making."

Robert Lambert, Head of Cards Strategy - Permanent tsb bank - Ireland

Acquirer Strategy and Operating Model

"Savantor brought an effective blend of European acquirer market expertise and transaction processing solution design. Their experts quickly forged strong working relationships with our team. We enjoyed working with them to create our future acquirer strategy."

Mikko Hyttinen, SVP - Lending Services - OP-Pohjola Group - Finland

Clients - Request Support

Send us a support request and one of our specialists will be in contact to assist you.

Consultants – Upload your CV

Register your CV with us and gain access to a range of job opportunities through our online job search portal.