The consumer in lockdown: Consumer—merchant payments in a mobility-constrained environment

Abstract

The COVID-19 pandemic has prompted a broad-ranging response from governments across the world. A common theme of those responses is to lock down consumers, largely confining them to their homes. This paper explores what the COVID-19 lockdown could mean for consumer behaviours, and therefore by implication, for payments. In this period of lockdown, consumer needs do not go away — but how those needs are met and how those solutions are accessed could change radically. This situation will favour digital business models with delivery services, over physical stores, restaurants and other venues. Payment providers are likely to see a rapid change in the mix of payments towards contactless and e/m-commerce payments. This paper argues that it is important not to lose sight of the strategic implications of what could be a profound change in how we live our lives and our relationship with digital technology.