Impact of COVID-19 on the Global Digital Transaction Management (DTM) Market
The COVID-19 virus has spread across the globe. The pandemic has significantly impacted various industries, leading to a slowdown in the global economy. The lockdowns imposed by the governments in most countries have confined people to their homes in order to contain the spread of the pandemic. COVID-19 spreads when people come in close contact with a person having respiratory symptoms of the coronavirus infection. Precautionary measures such as social distancing, hand sanitization, and the use of hand gloves at public places, manufacturing units, and other businesses are being taken to prevent the spread of the virus. Handshaking is the most common way in which COVID-19 has been observed to spread. Therefore, digital payments play a crucial role during the current pandemic crisis. People have started making payments through mobile devices instead of paying cash, as digital transactions minimize physical interaction and ensure a secure payment process.
Increasing Internet penetration across the globe is also one of the factors responsible for the growth of the market. There has been an upsurge in the use of video streaming platforms such as Netflix, Hotstar, and Amazon Prime, among the people who have been confined to their homes. Digital payment methods help in making payments for the subscription charges of these applications. Besides, the e-commerce market has also witnessed growth during the COVID-19 pandemic. E-commerce platforms such as Flipkart, Myntra, Shein, and Amazon, have placed restrictions on cash payments, and are encouraging customers to make digital payments to safeguard customers as well as their employees. This, in turn, is propelling for the growth of the digital transaction management market during the COVID-19 pandemic.
North America is expected to be the fastest-growing market over the forecast period owing to the growing adoption of cloud services and the increasing demand for digital transaction management, which is propelled by the existence of a technically advanced economy. Countries such as the U.S., Canada, and Mexico have invested heavily in the R&D of cloud technology and automation. The market is expected to grow significantly in the post-pandemic period.