The pandemic has accelerated the adoption of mobile payments
Internet changing banking
October 30, 2017
The pandemic has accelerated the adoption of mobile payments
LWe are still far from being able to say that cash has died or will die as a method of payment. What we can say is that other methods, such as Enso, are becoming more and more relevant in our country. In Mexico there is a high rate of use of cash, but we have also seen a growth in internet penetration and with this, of new payment technologies and electronic commerce, specifically, with smartphones. According to an INEGI survey (February 2020), in Mexico there are 80.6 million Internet users, an increase of 4.3 percentage points compared to that registered in 2018 (65.8%). The main means of internet connection, with 95.3%, is the smartphone.
Since before the quarantine began due to the coronavirus, the trend had been pointing to consumers switching to technologies related to their cell phones to make their payments. It is true that this pandemic has accelerated that adoption. According to a study done by VISA (April 2020), 39% of people said that "avoiding contact" is what leads them to buy online, while 26% said it is a more convenient way to buy goods and services. A Mercado Libre study highlights that almost 6 out of 10 people will continue to use electronic payment methods after the pandemic.
It is here where companies, like Enso, that are dedicated to taking advantage of new technologies to develop a better user experience and offer more relevant products for the market. The result is visible, at Enso we have seen transactions double in recent months, as more people prefer to make payments via mobile and move away from paying with cash. Precisely for this reason, we launched a new modality that allows you to pay for electricity and recharge Telcel, Movistar and Spotify from your cell phone.
It's not just fintechs that are approaching this goal. Facebook launched a little more than two weeks ago its new “Shops” product where they transform Facebook and Instagram with the step they needed to approach an ecommerce, into digital stores without having to leave their social platforms. And why wouldn't they! In order to stay home and reduce infections, we spend more time than ever online and even more on social media.
However, not all companies have the ability to develop complete e-commerce portals or pay the commissions associated with a payment gateway. Due to covid-19, many companies are implementing a digital sales strategy for the first time. Some are finding ways to teach on Zoom, offer consultations on Skype, or sell their products on Instagram.
Although there are multiple channels to establish communication with clients in a simple way, the same was not true to be able to charge clients in a simple way, remotely and without paying commissions. For this reason, at Enso we develop cashtag , helping small companies to accept digital payments with credit and debit cards, without having to pay the multiple fees of the payment systems. A company can create its own cashtag from the app and share with its customers to start receiving payments without having to share their bank details or phone number http://www.ensobank.com.au In addition, the following technologies that will set trends in the coming years stand out: Near Field Communication (NFC). It refers to card users who use contactless technology or payments incorporated in the cell phone as with Apple Pay. Increasingly, businesses must have a physical terminal that can read the card or cell token remotely with a simple approach or "tap" between one and the other. The debit card that we launched at the beginning of the year , precisely has contact less technology and being backed by Mastercard, we follow the security and use protocols, making your card work in any country where you want to make a purchase or for the same purchases in line. QR codes (Quick Response or Quick Response). The consumer can read the vendor's code through their cellular device and authorize a faster and more efficient transfer. In Mexico, the most prominent example of this technology is CoDi, an initiative in which we will seek to participate in the medium term. An open wallet. It works as a payment method to any business or between consumers. This is our flagship product. We believe that money transactions should be easier and that it should not cost you to transact with your money. With this objective in mind, we launched our digital wallet exactly one year ago where you can send and request money from all your phone contacts without having to add CLABE accounts, wait for a business day or pay extra commissions. This type of technology provides greater security in payments, more control and more efficiency. They contain biometric technology to accept payments, which means that only you can access them. A backup and visualisation at the time of your transactions and a better experience when making any purchase much more easily, without the need to have cash or a physical debit card, although if you want one, we recommend ours.
