The pandemic accelerated payments industry digitization across the entire landscape, as merchants turned to ecommerce to keep doors open, consumers eschewed cash in favor of electronic and contactless payments, and payments technology providers rapidly developed and launched new solutions to keep up.

The US has been relatively late in introducing contactless cards, which are credit or debit cards that include a near field communication (NFC) chip that can complete a transaction simply by tapping on a reader. But those cards are starting to arrive in the US now that most point-of-sale (POS) systems have the NFC capabilities to accept them.

During the coronavirus pandemic, many consumers have preferred to pay local businesses using traditional payment methods over contactless channels. According to May 2020 polling from Podium, the highest share of US internet users surveyed (42.9%) said they preferred using a credit card reader, with cash coming in second at 18.4%.

Apple Pay’s large acceptance network and user base could make it a formidable player in the buy now, pay later space—posing a major threat to incumbent BNPL providers and credit cards.

Since credit card users are more likely than debit users to favor mobile contactless, per Payments Canada, there is still momentum in the market: The tendency to choose contactless for credit outpaced debit even during the pandemic. High credit card usage ultimately creates revenue opportunity for wallet providers.

Lockdowns, online shopping, and fear of germs during the pandemic have hastened the shift toward all types of digital payments. As a result, Gen Z has fully embraced electronic wallet services, contactless payments, peer-to-peer payment apps, and digital uses of credit, including buy now, pay later.

As customers limit credit card use to avoid debt, here’s how credit issuers can regain volume for the rest of the season—especially in-store.

Solutions introduced last year like Apple Family Card and wallet support for more transit systems could help the tech giant increase volume.

ACH payments rose as card payments made a surprising drop, and consumers tried out new payment types.

Enabling cryptos into products like Apple Pay and Apple Card could open up monetization and engagement opportunities.

Co-brand card issuers and brand partners have an opportunity to reimagine their offerings in the pandemic’s wake. Leaning on newfound digitization and shifting spending habits can help providers tailor their offerings in ways that widen their net, grow volume, and appeal to the maximum number of customers.