“There is a surge of payment processing during the holidays. As the number of transactions & chargebacks rises, so does the desire for near-instant payments for both employers and employees” says Ashish Bahl co-founder of Kyck Global.
Even though cardholders file chargebacks year-round, there is still a subject to seasonal ebb and flow. Between the months of January and March, there tends to be an uptick in chargeback issuances, which can also be known as the post-holiday chargeback season.
Claims have been made that this trend may be more popular due to the ever-lingering effects of COVID-19. One survey’s findings announced that one-third of the respondents committed friendly fraud by claiming that the product never made it to their home in 2020.
What are Digital Payment Transactions?
Digital payment transactions have been breaking records recently in a new, more socially distant economy due to COVID-19. Most companies are now hopping aboard the trend of instant-payment transactions to their employees due to the low fees and easy sending abilities to the recipients.
Most people are opting to use near-instant payment transactions during the holiday as it will end up going straight to the recipients, who then are able to take the money and transfer the funds directly into their bank account rather than having to wait a set amount of days for it to “clear”.
What Companies Offer Instant Payment Methods?
Paypal and Venmo have been the most used and most popular methods to send money to friends and family during the pandemic and during the holidays. When these accounts hit a positive balance, and maintain a positive balance, consumers are then more likely to pay with these apps rather than transfer the funds to a bank account. While Venmo doesn’t quite have business accounts available yet, consumers can pay with Venmo funds via PayPal. In order for this type of payment method to work for ecommerce purchases, merchants should integrate PayPal into their checkout options, as well as they should consider making a “Venmo accepted” indicator for their stores.
When companies such as Paypal and Amazon Pay do more than credit-card providers do to protect their merchants, and decrease the risk of illegitimate chargebacks, it can lead to saving merchants time and money to not deal with the havoc that chargebacks create.
Are There Any Benefits To Near-Instant Transactions?
Near-Instant transactions have also allowed companies the ability to grow their retail sales by an increase of 24% since 2019. By looking at statistics, you are able to see that consumers enjoy the convenience offered by purchasing through remote channels due to the convenience and satisfaction guaranteed.