Payments Snapshot in Belgium: Coronavirus (COVID-19) Sector Impact

Payments Snapshot in Belgium: Coronavirus (COVID-19) Sector Impact

Summary

The Coronavirus (SARS-CoV-2) outbreak, dubbed COVID-19, is first and foremost a human tragedy, affecting millions of people globally. The contagious Coronavirus, which broke out at the close of 2019, has led to a medical emergency across the world, with the World Health Organization officially declaring the novel Coronavirus a pandemic on March 11, 2020. The virus has spread to 187 countries/regions with over 3.1 million confirmed cases, with its spread outpacing other major infectious outbreaks from the past.

The pandemic has led to large-scale unemployment in Belgium. According to the National Employment Office, nearly 98,000 workers in Brussels - representing 30.1% of the region’s wage earners - had applied for temporary unemployment as of April 26.

Online sales in Belgium have also increased since the outbreak, as consumers are purchasing online to avoid exposure to disease vectors. E-commerce companies including Delhaize, Carrefour, and Colruyt saw their online sales increase in February and March.

This report focuses on the impact of the Coronavirus outbreak on both the economyand the cards and payments industry in Belgium. Based on our proprietary datasets, the snapshotprovides a detailed comparison between pre-COVID-19 forecasts andrevised forecasts of total payment card, debit card, and credit and charge card transactions by value and volume. It also offers information on measures taken by the government to combat Coronavirus.

Scope

- Hospitality is among the most affected sectors. The Brussels Hotels Association estimates that its members will record losses of up to €10m ($11.23m) as a result of cancelled bookings.
- While cash payments are set to decline, a rise in contactless and online payments is expected in Belgium. Online purchases are likely to see a surge, benefiting online payment solutions such as PayPal and Masterpass. Likewise, mobile wallets including Apple Pay and Payconiq are expected to benefit from an increase in contactless payments.
- Belgium’s buy now pay later market - which is dominated by third-party service providers such as Afterpay and Klarna - is likely to face upheaval in the short to medium term.

Reasons to Buy

- Make strategic decisions using top-level revised forecast data on Belgium's payment industry.
- Understand the key market trends, challenges, and opportunities in Belgium's cards and payments industry.
- Receive a comprehensive insight into payments market in Belgium.