Coronavirus accelerates shift to online shopping as consumers fear contracting the disease from handling banknotes
- Shift to touch-free transactions and e-commerce is partly driven by consumers’ pressing concern over hygiene, says Mastercard
- Online grocery sales in Hong Kong rise 73 per cent in the first quarter
The deadly and highly contagious coronavirus pandemic is speeding up consumers’ preference for contactless and digital payments as hygiene concerns about handling banknotes become a top priority for consumers in Asia-Pacific, according to Mastercard.
Studies by market researcher Nielsen and global consultancy Bain & Co also show that e-commerce is one of the few winners amid the world’s worst recession triggered by an unprecedented economic shutdown and massive lockdowns across the globe as a way to stem the spread of the disease.
In Asia-Pacific, save for Japan and South Korea, eight other markets polled by Mastercard found that more than half of consumers consistently said they plan to use cash less often, led by 69 per cent of Australians, and 67 per cent of Singaporeans.
“Our shift to digital commerce is here to stay as people embrace the benefits of safety, security and convenience,” said Sandeep Malhotra, executive vice-president for products and innovation in Asia-Pacific at Mastercard. “Consumers now want on-demand products and services – whether it’s food delivery, groceries, fitness courses, telemedicine, conferencing, learning or entertainment. “
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He added that such demand and expectations will continue to drive e-commerce even after Covid-19 subsides.