Cash on delivery drops 28% during pandemic: Visa survey

KARACHI: Pakistani consumers are increasingly stepping away from cash and putting their trust in digital payments in both in-store and online environments during the pandemic, according to the 2021 Stay Secure Survey launched by Visa.

The cash is unlikely to return to its previous high level of use. According to the study, the use of cash in Pakistan continues to decline, while e-Commerce and contactless payments have increased in popularity and use since the start of the pandemic, paying by cash on delivery has declined 28 per cent.

The use of digital payments (contactless cards + mobile wallets + QR) for payment online or on delivery has increased by more than half (53 per cent) since the start of the pandemic.

The consumers’ feedback reinforces the belief that there is no reversal of this trend, with 20 per cent of the consumers saying they are less likely to use cash on delivery and 35 per cent more likely to use contactless payment methods in the future.

Trust is driving consumer preference in contactless and digital payments, but some concerns remain. Nearly two-thirds of the consumers surveyed (58 per cent) have high levels of confidence in digital payments (contactless, mobile wallets and QR payments) for shopping in-store and payment on delivery, an increase since the start of the pandemic.

Top reasons consumers gave for their trust in contactless include convenience (52 per cent), innovative way to pay (48 per cent), wide acceptance (47 per cent), speed (41 per cent), and avoiding human touch (38 per cent).

Knowledge of the technology that protects digital payments is a driver of consumer trust. Among consumers who trust contactless payments, over a third (36 per cent) said their knowledge and understanding of how contactless payments are protected by security features such as tokenisation and that they are as secure as EMV chip card transactions help them feel confident about the payment technology.

Among those who do not have adequate levels of knowledge of the technology, more than half (53 per cent) said knowing how tokenisation works would help build their confidence in digital payments and resolve lagging doubts about the safety of digital payments.

For example, close to a third fear misuse of lost or stolen contactless cards due to a lack of understanding of how the technology works. These findings reinforce the importance of continual education on safe digital payment practices among the consumers to maintain their trust.

Neil Fernandes, Visa’s head of risk for the Middle East and North Africa, said: “As our survey results indicate, Pakistani consumers have fully embraced digital payments in the Covid-19 era but that does not come without risks. As [the] consumers shift online, they need to stay vigilant, as fraudsters have sought opportunities to exploit these changes in how people pay for goods and services.”

“This is why constant consumer education is so much more important than ever before, and as an industry we cannot afford to let our guard down. Our ongoing Stay Secure campaign is part of our effort in bringing together all participants in the payments ecosystem to work together to advance efforts to educate consumers on how to stay vigilant, identify potential fraud, and what actions they should take if they are affected,” he added.

The survey corresponds with the launch of t7he Visa’s third annual “Stay Secure” social media campaign for Pakistan on Facebook (@VisaMiddleEast).

The campaign reinforces safe digital payment practices and reminds the consumers on how they can protect personal data even as they enjoy the benefits and convenience of e-Commerce and contactless payments.

The Pakistan Stay Secure webpage also includes fraud prevention tips for the consumers and information on security features of digital payments.

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