How digital aid distribution is underpinning recovery

The sudden emergence of the pandemic revealed just how vulnerable we are as humans. Without warning, a public health crisis quickly developed that had a serious impact, both socially and financially, on communities around the world. Governments moved fast to try and reduce the scale of the emergency, providing financial support schemes for the most at risk. It was distributing these funds and getting help to those who needed it most that became one of the most pressing issues. Efficiency, speed and security were paramount. It quickly became clear that digital payments were the answer.

Going digital meant that funds could be sent to struggling people worldwide, from small businesses to frontline workers to isolating individuals. This growth in digital payments has not only allowed money to be transferred without contact, thereby slowing the spread of the virus, but also enabled those without bank accounts to receive funds and for local spending to be promoted.

First aid

The world may never be quite the same again, but as we slowly emerge from the severest levels of restriction, all eyes are on a recovery and getting back to normal as quickly as possible. Providing financial aid to those who have been worst hit by Covid has been an important step, and ensuring fast access to funds has become crucial.

The Red Cross has instigated the most widespread global response in a generation, providing aid to those in need across 120 countries. This has ranged from distributing bank cards to 1.6 million Syrian refugees in Turkey, to uploading cash directly to people’s phones in Kenya. ‘We see financial aid as a huge part of our humanitarian toolkit,’ explains Jon Pewtner, UK Operations Cash Development Manager at British Red Cross. ‘It just fits the bill, it gives choice and dignity, and allows people to start their recovery straight away.’ In the U.S., Visa also partnered with government and industry to help stimulus funds reach Americans electronically through prepaid cards.

‘Initiatives such as digital aid payments give people the choice and dignity to choose how they support themselves and their families,’ explains Charlotte Hogg, CEO, Visa Europe. ‘Many of those in receipt of funds also shop locally, helping struggling businesses in their communities. This is a tangible way to support people and businesses who have seen their lives and livelihoods greatly impacted by this very human tragedy.’

In the early days of the crisis, it was a priority to get funds to those whose access to food, medication and supplies were most limited. However, as the recovery continues, the focus is increasingly shifting towards limiting contagion as we go about our daily lives. This means getting back to workplaces safely, enabling local businesses to get back on their feet by providing customers with a contactless method of payment in their shops and encouraging people to spend locally as they emerge from lockdown.

Touchless, move more

In the early days of the Covid-19 crisis, there was an unprecedented move to close offices and shops and introduce lockdown measures. Mobility, both locally and internationally, was not only something which we had taken for granted, but also an integral part of the business world. As the pandemic swept across the world, supply chains faltered and global travel ground to a halt. Happily, freedom of movement is now beginning to resume, though it looks very different in a post-Covid-19 world.

With the virus and infection prevention still dominating everyday life, people remain wary of public transport. Pre-pandemic, tap-to-pay’s main selling points were that it made travel quicker and more convenient. Now contactless payment is a must have for consumers. After reaching a global low in April, contactless transactions on transport systems grew over the next two months and had increased by more than 187 per cent by the end of June. It is also not surprising that globally, more than one-third of consumers said they would be certain, extremely or very likely to get a contactless card soon. Given the contribution of public transport to local economies, not to mention its sustainability credentials, it is vital our systems are being used again, and safely. Visa now has more than 500 active transit projects, helping numerous major cities launch tap-to-pay solutions during the pandemic, and it has partnered with governments in more than 50 countries to raise contactless limits.

According to Square, more than three-quarters of payments in the UK are cashless. It is this rise in digital payments, accelerated by the pandemic, which is helping individuals, communities, businesses and governments to address the challenges as we begin to recover from the effects of the global health crisis. From distributing vital financial aid to the most vulnerable in our communities, to helping us travel freely, digital payments are helping to enable us all to live a more normal life.