How COVID-19 Is Ushering In a New Era of Cashless Technology
- 07.12.2020 06:16 pm
Cashless technology isn't a completely fresh concept. People have been using credit cards for decades, and the market for fintech services has been growing steadily. That being said, the current health crisis has underscored the need for economies to go cashless as a way to restrict the spread of the coronavirus. With social distancing measures and work from home arrangements in place, more consumers are relying on digital transactions for purchasing goods and luxuries, as well as paying bills and taxes.
As the pandemic drags on and governments need to keep the gears of commerce churning, the current situation is signalling a new era for cash. It's only a matter of knowing what to expect in the months to come.
At this point, we already know a few key developments:
The rise of fintech investments
There is no doubting the fintech industry's astronomical growth over the years. Just last year, The Business Research Company expected the industry to grow at a rate of 24.8% until 2022, owing to an influx of demand for digital payments.
COVId-19 has definitely intensified the need for digital payment services, so much so that consumers have considered Chime to be their primary bank. Meanwhile, Square's revenue forecast to grow 20.01% next year has been a welcoming development for startups that also want in on the action.
As consumers and organizations adapt to the new normal, the market for contactless payment technologies will surely encourage innovation and create the ideal conditions for fintech startups to thrive. This, in turn, will also attract more venture capital investments. At any rate, fintech will surely be a snowball that won’t stop growing!
Cashing in on cryptocurrency
For sure, the current landscape is also an ideal playing field for cryptocurrency investors who, up until now, have enjoyed a market that seems resilient against the effects of the pandemic. There’s no telling how and when the cryptocurrency markets will feel the pressure as economies are experiencing recessions.
At any rate, Ethereum and Bitcoin investors are sticking to their guns in maintaining the idea that cryptocurrency markets will always remain a safe haven when tangible assets take a plunge. This is indicated by the number of cryptocurrency ATMs that have been set up since the start of the year. COVID-19 has accelerated the demand for crypto ATMs. In a way, this illustrates positive growth prospects for digital assets.
However, governments will need to introduce legislation to strengthen their regulatory powers over an industry that has gone largely unregulated for some time.
However, let’s not get ahead of ourselves. The future remains uncertain, but at least now we know where to turn when we have bills to pay at a time when social interactions are limited. What’s certain is that money will keep flowing no matter what.