‘Omicron’ has split the world into two, some believing that we’re reaching an endemic while others believe the worst is yet to come. One thing is for sure, COVID19 has taken the world by storm. On the 7th of January,2020 China declared the first case of Covid in the world. On the evening of 24 March 2020, the Government of India had declared the first lockdown things have never returned to “normal”. The drastic change in lifestyle brought about a change in consumer behaviour, one which retailers are evolving to adapt.

Many people mistake an endemic to be the virus just disappearing. In reality, the endemic for covid is that a large number of people will gain immunity from vaccines and natural infections such that hospitalization rates and death counts will decrease and transmissions will below. Spain was the first country to remove mask mandates in the country. Switzerland and UK are also considering it. Covid 19 has changed consumer patterns due to mobility restraints and the digitalization industry.

What is the change in consumer behaviour?

Noticeable changes have been seen not only in the increased digital adoption but also in the increased awareness of health, changes in mobility patterns and purchasing behaviour. There has been an increase in digital adoption for entertainment, shopping, education and financial services. Surveys have also shown that more than half of the people using digital channels plan on continuing to do so. Consumers are also leaning to purchase from local shops and producers.

UPI payments have made a record-breaking amount of 456 crores with the total value of transactions as Rs. 8.27 lakh crores as of December 2021. While consumers have shifted towards digital payments, they look for driving factors to stick with it. Driving factors for consumers include:

• Increased safety against frauds and thefts
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• Expecting better digital experiences
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• Accessible services which do not require much travel
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• Hygiene awareness due to pandemic
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• Simplified payment process
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• Convenience by offering options to make digital transactions
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How can a retailer benefit from the digitalisation of payments?

Digital payments benefits are like two sides of a coin. While on one side it benefits consumers, it can also help retailers. The advantages that a retailer has are:

• Higher customer in-store traffic: By offering financial services, retailers attract a higher footfall at their shops.
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• Large mobile market: A report found that there are over a billion smartphones and 330 web users in India, creating a large target audience.
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• Lower overhead costs: costs such as set up, maintenance and bank charges decrease. Payment accepting devices require low investments.
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• Gain customer trust: Customer loyalty is high as digital transactions are safer and faster.
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• Conserve time and effort: Digital payments help save time as the transaction takes place quickly. It also reduces manual disturbances.
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• Earn an extra income: Agents offering financial services can boost their earnings through commission-based earnings.
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• Give back to society: Offering financial services can increase digital awareness. It can solve the inconvenience faced by consumers.
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How can a retailer incentivize its customers?

• Many digital wallet companies are offering value-added services.
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• Raise awareness regarding the convenience of digital payment methods.
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• More PoS solutions are being made available to merchants.
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• Offer incentives such as discounts and cashback offers.
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• Carry campaigns to educate the consumers especially in the rural areas.
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• The government has launched reward points and incentive schemes.
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• RBI has set up norms to help reduce cross transaction costs so retailers can offer lower transaction costs to the consumers.

Understanding consumer behaviour can work symbiotically. Our future is uncertain whether we are reaching an endemic or not. Adapting to our situation is vital. The shift towards digital payments is taking place exponentially. The value of digital payments in India alone has been predicted to touch 1 trillion dollars by 2026.

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