NEW YORK, NY / ACCESSWIRE / November 22, 2021 / Consumers in Latin America now prefer digital financial channels, reducing the use of cash. Chile stands out in the region with 74% of surveyed people reporting a decrease in the use of cash since the beginning of the pandemic.
The COVID-19 pandemic and the measures taken to contain the spread of the virus have driven digital transformation in companies of all sizes regardless of geographic location or industry. One of the biggest changes in the business and public spheres is focused on reducing the use of cash, after the World Health Organization (WHO) suggested that people make transactions with contactless devices to reduce the spread risk.
As a result, Chile was positioned as the country with the greatest reduction in the use of cash, above countries such as Portugal (73.9%), the United Kingdom (71.0%) and Spain (70.3%), and well above Italy (50.7%) and Mexico (56.9%). From this data, we can see how COVID-19 might drive the adoption of alternative means of payment to cash, promoting the use of contactless technologies and digital tools that accelerate the transformation of the sector worldwide.
According to the 2020 Mastercard LAC Innovation Forum study, more than 40% of Chilean citizens are working remotely since the beginning of the pandemic, and 53% think their mental health and concerns are at the same level they were at the beginning of the confinement. Finances have also proven to be the biggest concern of Latin Americans. However, in the case of Chile, the level of concern about finances, physical and mental health has evened out (being at around 30% in each area).
This report shows how e-commerce has become the only way to shop and online banking the easiest way to manage money, replacing cash, which is considered dangerous in terms of contagion. According to the results obtained, the confinement caused e-commerce in Latin America to almost double: before COVID-19 its penetration rate was 45%, as opposed to the last few months, when it has reached 83%.
E-commerce transactions have become the only means of acquiring physical goods, social interactions and entertainment. As a consequence, the range of features offered by new technologies is much wider than before, and their goal is to foster more secure payment methods based in the relationship between clients and businesses, and provide solutions that guarantee this relationship remains fluid, flexible, dynamic, and encompass several payment methods.
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