Paysafe: COVID-19 has altered all dynamics in US payments landscape

Paysafe Group has stated that ‘COVID-19 adjustments’ have forced US consumers to rapidly accelerate their take-up of digital payment services to accommodate their everyday habit

Publishing its latest ‘Lost in Transactions’ report, surveying its global customer base, Paysafe revealed that over a third (38%) of US consumers are using digital wallets to transfer money to friends and family.

As a result of COVID-19 circumstances, over half (56%) of US customers surveyed acknowledged that they had reduced their cash outage, choosing to find new services to transact digitally with merchants and services.   

Further Paysafe survey findings saw 29% of US consumers stating that they had made ‘at least two digital transfers’ in the past month – with 2%  doing so at least 11 times.

51% of those surveyed confirmed that they had chosen to reduce their ‘cash handling’, due to health concerns, turning their attention to digital wallets.  

Paysafe underlined that COVID-19 adjustments towards online transactions will be a permanent trend as 49% of US consumers state  ‘they will be shopping online more’ even when lockdowns restrictions are fully eased.

At a business level, Paysafe added that COVID-19 trends have ushered a new era of competition in the North American payments sectors, in which incumbents will compete to take-up escalated market share of digital wallets, money transfers and remittance services.  

Under a fifth (19%) of consumers said they would use some form of physical payment method to send money overseas during the pandemic.

Lorenzo Pellegrino, CEO of Skrill, NETELLER and Income Access at Paysafe, commented:  “COVID-19 continues to be a catalyst for change across the whole payments industry. Consumers seem to be switching to digital offerings, signaling a definite shift in consumer preference for truly frictionless payment methods. 

“Even as cash-based money transfer options reopen, preferences towards digital options, induced by the pandemic, are unlikely to subside.

“A digital remittances solution such as Skrill Money Transfer is far more cost effective than a traditional bank transfer and has become an essential resource for people across the globe during the COVID-19 crisis, including for U.S. consumers. 

“As consumer confidence and awareness of the benefits of digital international remittances continues to grow this may well represent a permanent evolution for the remittances industry.”