Average remittance per transaction to decrease due to COVID-19, Tipalti data shows

Thursday 12 November 2020 13:08 CET | News

Tipalti, a global payables automation solution, has found that the average remittance per transaction (ART) during the COVID-19 pandemic across all transactions showed a decrease.

From the pre-COVID-19 period of Q4 2019 to the post-COVID-19 period of March through May of 2020, the ART dropped 5.0%. It recovered slightly from the period of March through May 2020 as compared to June through August 2020, at 1.2%. From the Q4 2019 to June to August 2020, the total reduction in ART was 3.8%.

Regarding regional trends, Tipalti looked at ART data by continent and found that South America and Africa were the hardest hit. South America’s ART decreased by 40.72% when looking at Q4 2019 when compared to the June through August 2020 period, and Africa saw an ART decrease of 35.57% during the same period. Many European countries took hard hits as well, with Finland, France, Spain, Denmark, and the UK amongst the worst performers.

In contrast, Asia and Oceania have increased their ART compared to Q4 2019. Asian countries have been able to maintain solid operations across Indonesia, China, and India. In addition, Norway and Sweden were amongst the fastest growing regions post-COVID-19 when compared to before the pandemic.

The Tipalti data also identified several noteworthy industry trends. Industries which grew at strong rates post-COVID-19 include transportation & storage, insurance, consumer services, and education. On the other hand, non-profits, environmental, and media & entertainment companies have been hardest hit based on the data.

Tipalti also looked at the retail, ecommerce, and marketplaces industry. The data team discovered that while some sectors including general retail and ecommerce saw a 58.8% and 15.4% ART increase, others – such as the gig economy and online marketplaces – experienced decreases. The decline in online marketplaces, which decreased by 43.0%, may be due to consumers looking primarily to buy essentials rather than specialty items.

The Business and Finance Services industry also saw a mix of both positive and negative ART numbers depending on the sub-category. For example, both financial services and wholesale distribution saw positive changes in ART, at increases of 34.5% and 54.9%.

Tipalti currently processes over USD 12 billion in payments annually for over 1,000 customers to 196 countries. This provides a rich data set to examine the economic impact that the pandemic has had.

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Keywords: Tipalti, payables automation, accounts payable, study, remittance, online marketplaces, payments
Categories: Banking & Fintech
Countries: World
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