Impact of COVID-19 on the payment industry

 Even before the pandemic struck, the payment industry was quite dynamic over the past few years. Double-digit growth rates, dizzy valuations, and technological advancements at an unprecedented rate are some of the indicators that prove it. However, one must not underestimate the small volume decline due to COVID-19.




The impact of COVID-19 pandemic on the payment industry has been less severe as compared to the other sectors of FinTech. However, it doesn’t mean that the payment sector is completely immune to the COVID-19 effects.

With social distancing and lockdown in place, the travel and transport industry has seen a tremendous decline. This decline has also affected all the payment service providers who were associated with the travel industry.

Also, the economic uncertainty due to the pandemic has forced people to spend money very cautiously which has resulted in the overall reduction of consumer spending. This reduction in consumer spending affects both the payment processing services as well as to those card issuers who get their revenues from the interchange fees.


Location: United States

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