NAVIGATING CORONAVIRUS - How payments can help keep your customers and business safe - FIS
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NAVIGATING CORONAVIRUS How payments can help keep your customers and business safe
8 WAYS
THAT PAYMENTS CAN
Coronavirus not only has the potential to put your
health, the health of your team and the health of
your customers at risk but it is also creating financial
uncertainty for many businesses. How you manage
HELP YOUR BUSINESS and use your payments can play a part in keeping
your business and customers safe.
MANAGE THE IMPACT Here are our top tips.
OF CORONAVIRUS
TIP 1
REASSURE YOUR
CUSTOMERS
Tentative times need clear communication.
Let your customers know that you’re taking the right
precautions to keep them, and your employees, safe.
Showing them how you’ve considered their safety could help build
their confidence and encourage them to continue engaging with you
– whether you’re remaining open as an essential business or if your
premises have closed.
You can do this by emailing your customer you’re monitoring the overall situation,
base, providing the most up-to-date including relevant government guidelines.
information on your website or letting
them know over the phone. Favouring contactless card payments
over cash could help cut the risk of
For businesses that have closed their transmission, so it’s important that this
physical premises, be clear about how option is available in your bricks and
your customers can continue to purchase mortar stores.
goods and services from you – and make
sure you have the appropriate payment The World Health Organisation has advised
methods to support it. consumers to avoid the use of cash, so
they’re likely to expect you to be set up to
For essential businesses, reassure support their payments. When customers
REASSURE FAVOURING
CUSTOMERS CONTACTLESS
customers through an enhanced cleaning do choose to use cash or chip and pin,
and sanitising regime in store, and make sure staff are trained on keeping
supporting the 2-metre rule. Communicate payment terminals clean and to wash through an enhanced card payments over
these extra steps and emphasise how their hands after handling cash. cleaning and sanitising cash could help cut the
regime in store risk of transmission
As of 1 April, the contactless limit in the UK will rise to £45, from the current limit
of £30. You can expect to see this new limit being phased in gradually.
TIP 2
THINK
OMNICHANNEL
With only essential businesses remaining open
and people needing to spend more time self-
isolating, your online presence will be more
important than ever in maintaining sales.
If you’ve found that your premises have had to close, ensure you’re
set up with an online presence. Make sure your ecommerce store
is simple to use, and online payments are set up to reflect local
preferences. This can improve the experience with your brand and
enable you to continue accepting orders.
Setting up an ecommerce website now Moving with customer demands and
has the potential to create longer-term adapting to different customer journeys
48%
value, too. can set you up for success.
OF CUSTOMERS The omnichannel experience has If you are setting up new delivery
already become an expectation for options, you can also arrange to take
CROSS BACK AND today’s consumers, with 48% of payments remotely over the phone
FORTH BETWEEN customers crossing back and forth via a Virtual Terminal or by email via
DIGITAL AND PHYSICAL between digital and physical Pay by Link.
interactions with interactions with companies.1
companies
FMCG: British supermarkets are making
contingency plans to counter panic-buying
and stockpiling.2
Dining: In the week following the nationwide
lockdown, orders on takeaway delivery apps
fell, with consumer anxiety and the departure
of some of the apps’ brands playing a part.3
TIP 3
ENCOURAGE
CUSTOMER
LOYALTY
In times of uncertainty, consumers
can be reluctant to spend on bigger,
discretionary purchases.
Give your customers a reason to continue spending
with you by rewarding them when they do.
Consider price reductions, promotions and customer loyalty programmes to help
retain income during this time and reward your customers for staying engaged
with your business, at a time when uncertainty can curtail consumption.
CONSIDER PRICE
REDUCTIONS,
promotions and customer loyalty
programmes to retain spend.
Retail: Analysts have warned that
retailers will be among the hardest hit.4
With non-essential stores closing, the
global slowdown in demand and consumer
confidence is expected to continue until
the virus is deemed ‘under control’.
Online trade, however, is booming in some
sectors, especially for electricals and DIY –
up 42% and 14%.5
TIP 4
CONSIDER
FLEXIBLE TERMS
Circumstances are frequently changing
– and flexibility could be crucial to your
business. During this time, there are many
reasons why your customers may change
their mind on their purchase or booking.
Keep in mind that it’s important to make it as easy as
possible for your customers adapt to their purchase
needs. A positive experience could help keep you
front of mind when they start spending again.
The tourism industry, for example, is seeing cancellations and hospitality
is seeing decline. For businesses in this sector, managing reputational
risk to ensure future bookings will be imperative. Businesses can consider
removing penalties for cancellations and offer flexible booking models to
help alleviate risk for consumers.
FLEXIBILITY
could be crucial
to your business
Tourism and hospitality: Figures from the World Travel and Tourism Council suggest the travel sector could shrink by up to 25% in 2020,6 as airlines cancel thousands of flights and only essential travel is permitted.
TIP 5
REVIEW YOUR
CASHFLOW
A potential fall in sales could
hit your cashflow hard.
Whilst coronavirus is still in the news, spending
behaviours will remain different from the trends
you’ve been used to, so monitoring your income
and outgoings is more crucial than ever.
You could also benefit from business funding – with flexible
options available to give you additional control and clarity.
This could be a solution to help cover cashflow fluctuations,
so you can continue focusing on your business priorities.
MONITORING
YOUR INCOME
AND OUTGOINGS
is more crucial than everTIP 6
UNDERSTAND YOUR
SUPPLY CHAIN
1 in 4 British retailers are reporting severe
disruptions to their supply chain as
coronavirus spreads.7
The global nature of the pandemic means that, whether
your supply chain is domestic or international, you may see
an impact. And that impact could differ depending on the
current measures in place in different locations.
The lockdown of the UK, for example, may Keep an eye on stock levels, as customer
mean hold ups in your domestic supply demand and labour shortages could
chain. Manufacturing powerhouse China, impact on your usual flow of goods.
however, is making progress in their This could require you to adapt your
containment of the virus and has reported usual orders to reflect these changes.
the reopening of factories and stores.
It’s important to be aware of the areas that
may cause issues, and to be agile in your
response. Your business could explore
alternatives to your normal suppliers and
1 IN 4 BRITISH
brands to help keep you stocked with the
products and materials you require, even
RETAILERS if price points are different.
are reporting severe
disruptions to their
supply chain.Logistics: With 51,000 companies worldwide having suppliers in the affected regions,8 reduced access to products is having a direct impact on supply chains, and logistics companies are experiencing unused capacity and lower demand for business deliveries – with last minute cancellations. However, with many consumers choosing to purchase online, couriers may see an increase.
You may also find further
TIP 7 useful information through your
industry trade association, such as
The Federation of Small Businesses,
or Chamber of Commerce.
PREPARE A
CONTINGENCY PLAN
In the case of personal isolation, or if you’ve
moved to a virtual workforce, ensure you
have a contingency plan in place.
If you’ve been categorised as a non-essential business and have had to
close your store or office doors for now, you’ll need to have the processes
in place to work remotely. Make sure you’re set up to continue accepting
payments from your customers, working with your payments provider
to make remote payments as easy as possible for your customers.
There will be wider implications for Businesses in the hardest hit sectors, tourism
your business, but your bank may have and food and drink for example, should look
implemented additional support – check for further advice from the government and
in with them to see if they’ve made any make the most of the support available.
changes to loans or repayment plans. Whether it’s loan or wage payments, it could As of 26 March, the Chancellor has announced additional support, including:
The Bank of England, for example, help support your business now and could
has cut interest rates to 0.25% in help you prepare for when business starts
response to the coronavirus.9 returning to normality. Additional £350bn in loans Additional grants for
retailers and pubs
Chancellor’s support: at a glance10
On 11 March, the Chancellor announced a £30bn fiscal stimulus package as part of the £20bn in other aid
Budget, including: Up to 80% of furloughed
employees’ monthly wage cost
A business rates holiday
Cutting business rates Coronavirus Business £2bn to cover cost of sick
to zero this year for firms Interruption pay for firms with fewer Information correct at time of publishing, for further or more recent updates,
please visit please visit www.gov.uk.
with rateable values Loan Scheme than 250 staff members
below £51,000TIP 8
WORK WITH
THE COMMUNITY
Stay in communication with the businesses around
you, whether that’s by location or in your industry.
For essential businesses, a strong connection with your community
can help you provide the services and products that your customers
require when stock may be low, by redirecting them to another
place. Your customers may remember this added value and
it could help build long-term loyalty with you and your business.
The future business environment may feel unclear, but by taking steps to prepare
You could organise alternative delivery locations, for example, and coordinate
on stock levels to ensure your local customers aren’t left empty-handed.
For non-essential businesses, it could be worth getting in touch with the stores
that have remained open in your area, as it could create an opportunity to get
your products in front of customers on new shelves.
Equipping your business during COVID-19
The future business environment may It’s important that you continue to
feel unclear, but by taking steps to monitor the current situation and stay
prepare your business during this time, aware of your business performance –
A strong connection with
you’re better placed to help protect your this will help you plan for the immediate your community can help
customers, employees and revenue. and longer-term future.
BUILD LONG-TERM
LOYALTY WITH
YOUR BRANDSources 1 https://www.accenture.com/gb-en/insight-delivering-omnichannel-now 2 https://www.foodmanufacture.co.uk/Article/2020/03/04/Fears-over-food-impact-of-coronavirus 3 https://www.ft.com/content/1c296d9e-e654-486a-9e40-f8f39ea191e0 4 https://www.theguardian.com/business/2019/mar/05/uk-retailers-suffer-weaker-sales-due-to-brexit-uncertainty 5 https://www.theguardian.com/money/2020/mar/28/britons-shopping-spree-ease-covid-19-confinement-hobbies 6 https://www.bbc.co.uk/news/business-51852505 7 https://www.theguardian.com/business/2020/mar/04/uk-retailers-hit-by-supply-disruption-amid-coronavirus-concerns 8 McKinsey & Company, 2020, Coronavirus COVID-19: Faces and insights 9 https://www.bankofengland.co.uk/news/2020/march/boe-measures-to-respond-to-the-economic-shock-from-covid-19 10 https://www.independent.co.uk/news/business/news/coronavirus-budget-2020-business-rates-a9394351.html This content is for information purposes only. We have taken care in the preparation of this information but will not be responsible for any loss or damage including loss of profits, indirect, special or consequential loss arising as a result of any information in this document or reliance on it. The content of this material may not be reproduced without prior consent of Worldpay. This material may include information on third parties and their services. The reference to these third parties is for information purposes only and does not constitute an endorsement or recommendation of the third party or their service.
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