Impact Of Covid-19 on Finance & How Cashless Payment System can Curb It?

Coronavirus Financial Panic. GETTY

COVID 19 pandemic is a great misery for the world. It made almost every country's economy to bleed. Streets deserted and shops are closed down. The majority section that suffered most from this pandemic is micro and small industries or self-employed. Even if the lockdown will be lifted then it would be very difficult for these businesses to push up. COVID will not only change the way of lifestyle but also the way business is done and much more. The faith of people in cashless payments has become stronger. With a problem comes a solution. Total payments volume has decreased due to a reduction in trade and consumption.

Some Facts:-

  • After 10 days of lockdown, demand for vegetables and fruits dropped by 60% as the bulk buyers and restaurants are closed down.
  • India’s fuel consumption fell 45.8% in April
  • Supply chains of big companies are also disturbed.
  • Because of rapid changes in the market condition, prices have been very volatile.

Now the focus should be on the solution as WHO in early March said that the corona virus may spread through banknotes and recommended that people should adopt contactless payments. It is also a fact that with pandemic there is always a rise in fraud cases. This causes a sense of insecurity among the people. With the decline of payments received by the company, there would be shrinkage in payment solution provider companies. Fintechs might see a less friendly and very competitive market.

To remove the insecurities the payments should be watched very closely and there is a need to bring the distributed ledger technology, ‘Blockchain’. To remain in the race these companies need to build confidence in the people. IoT (internet of things) driven payment systems will see rapid growth in the coming days as people are restricted to go outside their homes, their needs are to be fulfilled by the online delivery system, followed by online cashless payment either during the order or at time of delivery.

To run a company in a profitable way one needs to utilize the resources wisely. Spiderg is one of such companies that have made payment system easy for many small businesses. Spiderg has a very effective feature in keeping the records of vendors and suppliers and even tracks the payments. Micro and small companies must move to such platforms if they want to improve their efficiency. Spiderg also uses blockchain technology, which creates a kind of confidence among its users.

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