Karachi:Visa, the world leader in digital payments, today released results of a survey on the impact of the COVID-19 pandemic on payment behavior of consumers in Pakistan. Visa’s Stay Secure survey also looks at consumers’ general views, preferences and concerns related to digital payments and offers key insights for merchants.
The survey release corresponds with the launch of Visa’s second annual “Stay Secure” social media campaign on Facebook (@VisaMiddleEast) and Instagram (@visamiddleeast) to promote safe digital payment practices. This year’s campaign comes at a time when more consumers in Pakistan increase their use of digital payments, and many opting to shop online for the first time to get what they need during this health crisis. The Stay Secure webpage has tips and educational videos, and information on security features of digital payments.
COVID-19: Impact on Consumer Shopping and Payment Behavior
Forty-three percent of consumers surveyed in Pakistan have reduced shopping in-store since the outbreak of the pandemic. When they do shop at stores, more than half of the respondents (55%) surveyed are using less cash and those who use cashless options reported increased usage of digital payments. In fact, 37% of QR payment users reported increase in usage; and 32% of chip and PIN users reported increased usage. For online shoppers surveyed, 52% are shopping online more with 53% saying they are paying online with cards more than COD.
On innovative payment technologies such as QR code, 65% said they trust QR payments. Innovative way to pay, speed, convenience, wider acceptance, security and limited human contact, were the top reasons cited for consumers’ increasing preference for these payment solutions.
The New Normal?
These shifts in consumer behavior caused by the pandemic are expected to be the “new normal” as more consumers gain confidence in digital payments. Post the pandemic, 55% of online shoppers surveyed said they will continue to make more purchases online, and 49% said they will continue to opt more for paying with card over COD. For in-store purchases, 56% of consumers say they will continue to use QR payments more.
Kamil Khan, Country Manager for Pakistan, Visa, said: “The study shows that consumer behavior changes due to the pandemic – such as shifting online and increasing use of digital payments, are likely to continue even after the pandemic – an important take-away for businesses developing strategies for the post-COVID-19 consumer and market overall. We are excited to launch the Visa ’Stay Secure’ campaign to educate consumers about protecting themselves and to offer merchants important insights for navigating the new normal of cashless commerce.”
Data Privacy, and Biometrics: General Attitudes and Concerns
Up to 58% of respondents were comfortable sharing personal data with banks, telecom operators, and government owned entities. Name and contact information were cited as data that needs to be protected the most. Seventy-six percent find biometrics secure and for 66% the technology is convenient to use.
Neil Fernandes, Visa’s Head of Risk for Middle East and North Africa, commented: “The pandemic has changed how consumers in Pakistan shop and pay as more rely on and prefer digital commerce. With increased usage both among experienced and first-time users, cybercriminals too are keen to capitalize on the increased activity and vulnerability, especially of first-time online shoppers. That is why educating consumers about safe payment behavior is critical not only for the moment but as we move forward and adapt to the new normal. We are delighted to launch this campaign for another year to continue our mission of empowering consumers to continue using digital payments and online channels with full confidence.”