Payments in Belgium - (COVID-19) Impact Snapshot

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 pandemic has affected Belgium’s economy. The country’s GDP has been revised downward for 2020 due to the economic disruption caused following the outbreak.

To support the economy, the Belgian government announced a host of measures during March 6-20. Initially, a stimulus package of €7.5bn ($842bn) was announced, which included a €3bn ($3.37bn) fund for unemployment benefits for individuals and small businesses affected by the outbreak.

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 and revised 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

• 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.
• Consumers are gradually shifting from cash-based payments to digital payment tools, particularly non-contact tools, when transacting in stores in order to avoid exposure to potential disease vectors such as cash and POS terminals. This will result in a rise in the usage of contactless cards and mobile wallets such as Apple Pay, Google Pay, and Payconiq by Bancontact.
• Online sales in Belgium have also increased since the outbreak, as consumers are purchasing online to avoid social contact in stores. E-commerce companies including Delhaize, Carrefour, and Colruyt have seen their online sales increase since the outbreak of the pandemic.

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.