The COVID-19 pandemic has caused a boom in the digital payment industry. According to Dan Schulman, the CEO of PayPal, the pandemic has sped up the adoption of digital payments. In addition, he says the digital payment industry has become more important than it has ever been.
“What I think what’s happened is the world has accelerated from physical to digital across almost every industry,” Schulman said.
PayPal has reaped big from the pandemic
PayPal, the pioneer of digital payment in the world, is one of the companies that have reaped big from the health crisis. The company, which has built up a portfolio of e-commerce companies, including Braintree, Honeywell, and Venmo, reported a 22% increase in revenue in the last quarter. The results were reported amidst the pandemic that pushed the global economy to the brink of collapse.
The pandemic has caused businesses and economies worldwide to be closed as governments impose lockdowns and restrictive health protocols to curb the spread of the pandemic. With this, businesses have tried to readjust by putting in place tools and technologies to continue operating under the new normal.
The growth of the e-commerce industry
Amid the pandemic, an emerging trend has been the boom in the e-commerce industry as many shoppers and businesses turn online to beat the lockdowns. With physical meetings no longer possible, schools have tried to reinvent by adopting remote learning. Businesses are also implementing remote working policies allowing part or their entire workforce to work from home. Health institutions have turned to telemedicine.
All these shifts have favored the e-commerce industry and complimentary services. Retailers are turning online and setting up contactless payment systems. According to Schulman, many restaurants have been limited in capacity and are now offering much of their services online. In addition, delivery services like Uber Eats, Postmates, and DoorDash have reported an increase in business during the pandemic. These services rely on online payment systems.
Surprisingly, PayPal was the first to issue an alert on the impact the pandemic was having on businesses. The company projected the lowest revenue for the quarter.