NAVIGATING CORONAVIRUSHow payments can help keep your customers and business safe

8 WAYS THAT PAYMENTS CAN HELP YOUR BUSINESS MANAGE THE IMPACT

OF CORONAVIRUS

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 and use your payments can play a part in keeping your business and customers safe.

Here are our top tips.

FAVOURING CONTACTLESS

card payments over cash could help cut the

risk of transmission

REASSURE CUSTOMERS through an enhanced

cleaning and sanitising regime in store

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.

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.

REASSURE YOUR CUSTOMERS

1 TIP

You can do this by emailing your customer base, providing the most up-to-date information on your website or letting them know over the phone.

For businesses that have closed their physical premises, be clear about how your customers can continue to purchase goods and services from you – and make sure you have the appropriate payment methods to support it.

For essential businesses, reassure customers through an enhanced cleaning and sanitising regime in store, and supporting the 2-metre rule. Communicate these extra steps and emphasise how

you’re monitoring the overall situation, including relevant government guidelines.

Favouring contactless card payments over cash could help cut the risk of transmission, so it’s important that this option is available in your bricks and mortar stores.

The World Health Organisation has advised consumers to avoid the use of cash, so they’re likely to expect you to be set up to support their payments. When customers do choose to use cash or chip and pin, make sure sta­ are trained on keeping payment terminals clean and to wash their hands a�er handling cash.

THINK OMNICHANNEL

2 TIP

OF CUSTOMERS CROSS BACK AND FORTH BETWEEN DIGITAL AND PHYSICAL interactions with companies

48%

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.

Setting up an ecommerce website now has the potential to create longer-term value, too.

The omnichannel experience has already become an expectation for today’s consumers, with 48% of customers crossing back and forth between digital and physical interactions with companies.1

Moving with customer demands and adapting to di­erent customer journeys can set you up for success.

If you are setting up new delivery options, you can also arrange to take payments remotely over the phone via a Virtual Terminal or by email via Pay by Link.

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.

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

ENCOURAGE CUSTOMER LOYALTY

3 TIP

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

CONSIDER FLEXIBLE TERMS

4 TIP

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.

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 o­er flexible booking models to help alleviate risk for consumers.

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.

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.

REVIEW YOUR CASHFLOW

5 TIP

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.

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.

UNDERSTAND YOUR SUPPLY CHAIN

6 TIP

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 di­er depending on the current measures in place in di­erent locations.

The lockdown of the UK, for example, may mean hold ups in your domestic supply chain. Manufacturing powerhouse China, however, is making progress in their containment of the virus and has reported 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 brands to help keep you stocked with the products and materials you require, even if price points are di­erent.

Keep an eye on stock levels, as customer demand and labour shortages could impact on your usual flow of goods. This could require you to adapt your usual orders to reflect these changes.

1 IN 4 BRITISH RETAILERS are reporting severe disruptions to their supply chain.

Logistics: With 51,000 companies worldwide having suppliers in the a�ected 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.

PREPARE A CONTINGENCY PLAN

7 TIP

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 your business, but your bank may have implemented additional support – check in with them to see if they’ve made any changes to loans or repayment plans. The Bank of England, for example, has cut interest rates to 0.25% in response to the coronavirus.9

Businesses in the hardest hit sectors, tourism and food and drink for example, should look for further advice from the government and make the most of the support available. Whether it’s loan or wage payments, it could help support your business now and could help you prepare for when business starts returning to normality.

Chancellor’s support: at a glance10

On 11 March, the Chancellor announced a £30bn fiscal stimulus package as part of the Budget, including:

Cutting business rates to zero this year for firms

with rateable values below £51,000

Coronavirus Business Interruption

Loan Scheme

£2bn to cover cost of sick pay for firms with fewer than 250 staff members

You may also find further useful information through your industry trade association, such as The Federation of Small Businesses, or Chamber of Commerce.

As of 26 March, the Chancellor has announced additional support, including:

Information correct at time of publishing, for further or more recent updates, please visit please visit www.gov.uk.

Additional £350bn in loans

£20bn in other aid

A business rates holiday

Additional grants for retailers and pubs

Up to 80% of furloughed employees’ monthly wage cost

WORK WITH THE COMMUNITY

8 TIP

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.

A strong connection with your community can help

BUILD LONG-TERM LOYALTY WITH YOUR BRAND

The future business environment may feel unclear, but by taking steps to prepare your business during this time, you’re better placed to help protect your customers, employees and revenue.

It’s important that you continue to monitor the current situation and stay aware of your business performance – this will help you plan for the immediate and longer-term future.

Equipping your business during COVID-19

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 le� 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.

Sources 1 https://www.accenture.com/gb-en/insight-delivering-omnichannel-now2 https://www.foodmanufacture.co.uk/Article/2020/03/04/Fears-over-food-impact-of-coronavirus3 https://www.�.com/content/1c296d9e-e654-486a-9e40-f8f39ea191e04 https://www.theguardian.com/business/2019/mar/05/uk-retailers-su­er-weaker-sales-due-to-brexit-uncertainty5 https://www.theguardian.com/money/2020/mar/28/britons-shopping-spree-ease-covid-19-confinement-hobbies6 https://www.bbc.co.uk/news/business-518525057 https://www.theguardian.com/business/2020/mar/04/uk-retailers-hit-by-supply-disruption-amid-coronavirus-concerns8 McKinsey & Company, 2020, Coronavirus COVID-19: Faces and insights9 https://www.bankofengland.co.uk/news/2020/march/boe-measures-to-respond-to-the-economic-shock-from-covid-1910 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.