By Martina Weimert and Arnaud Saiag
This article was first published on June 18, 2020.
Editor's note: Oliver Wyman is monitoring the COVID-19 events in real time, and we have compiled resources to help our clients and the industries they serve. Please continue to monitor the Responding To Coronavirus Hub for updates.
The coronavirus (COVID-19) health crisis has had a drastic impact on the nature of transactions – online transactions have increased, while point of sale (POS) transactions have shifted towards contactless. Our report looks at payment trends in Europe, before outlining how merchant and payment service providers can react to the new normal.
Our report has found that in Western European countries overall spending has decreased by up to 50 percent year-on-year, with offline transactions decreasing by 60 percent and online transactions by 20 percent. Our analysis also found that July 2019 transaction levels are unlikely to be reached again until Q4 2021, with significant differences among sectors.
Although many geographies are gradually ending lockdowns, consumers have now developed new habits that are likely to last. In order to address these new needs, and to help merchants develop digital capabilities, merchant services providers must provide solutions that can be implemented quickly and go beyond basic payments capabilities.
For more information about payment trends in Europe, and the impact the COVID-19 pandemic is likely to have, download the full version of the report or contact our dedicated payments team.