As corporations pivot towards digital business models to help weather the Covid-19 pandemic, regulation continues to shape the European payments industry. Treasurers must prepare for the changes that Strong Customer Authentication brings, while embracing the latest e-commerce strategies. Sara Savidge, Managing Director, and Colm O’Monacháin, Vice President, J.P. Morgan Wholesale Payments, explain the key steps for treasury functions to take – and the pitfalls to avoid.
Business operations have been turned upside down as the Covid-19 pandemic has sent countries across the globe into lockdown. Physical purchases of goods and services have waned, while digital business models and e-commerce have risen steadily. In fact, 35% of people globally are now grocery shopping online or by phone as a result of Covid-19 and 45% are increasingly using their mobiles as a shopping channel 1.
Of course, not all industry sectors have enjoyed a boom. According to J.P. Morgan’s 2020 E-Commerce Payments Trends – Global Insights Report2, global e-commerce travel transaction volumes were down 91% year-on-year in April 2020, with lockdown taking its toll. Nevertheless, food, home entertainment and subscription services are underpinning growth.