Postal networks are an essential infrastructure emerging as a lifeline to the vulnerable to access cash, public services, pharmaceuticals, groceries, and other basic services during COVID-19 outbreak.
Like so many businesses, the Post Office has been hit hard by the Covid19 pandemic. Mail volumes are down, in some cases by a third, in other cases with nearly 100% because airlines stopped as a part of the supply chain. This is especially the case in smaller, landlocked developing economies in Africa, Asia, and Eastern Europe.
Post offices remain open as service points for pick-up of cash and to pay for bills, in many countries. Contrary to the closure of many retail outlets and agents, and certain bank branches, post offices emerge as a lifeline to access basic services in remote, rural areas during regular hours. Many governments require postal networks to be open 5 or 6 days a week. Post offices are part of the essential service infrastructure. Namibia, other SSA. pharmaceuticals, cash, groceries or just SIM cards for mobile telephony to stay connected. Examples: Rwanda, Georgia, Armenia, Kyrgyzstan.
The basic services provided at rural post offices include access to cash sent via digital channels from abroad, or from urban to rural zones, or just from healthy relatives to their vulnerable, poor family members. It also includes payments of bills, top-up of mobile, for customs fees for goods ordered online, payment of insurance premiums and depositing money. Of course, post offices do not only provide remittances and payments but are also essential in the provision of public services, known as e-government, and the typical postal services for sending parcels and letters. Special measures are in place for the pickup of e.g. pensions and social grants and keeping the social distance in the queue. Examples include South Africa, Namibia, other SSA.
Fees for cash out and sending money are waived: zero. Both Governments, Central Banks and Posts have intervened to waive the fees for cash withdrawals at post offices or via postmen with bank cards, e-wallets or for sending money. Examples include Botswana, UK, Ukraine, Kyrgyzstan, Russia.
Doorstep delivery by postal staff to the most vulnerable segments is where Posts emerge as the most paramount lifeline to keep the elderly, poor, weak and others included. Postmen – in many cases women! – deliver the cash to pensioners, disabled, and others much in need of this service. In some cases (e.g. Moldova, Italy) postal staff has been accompanied by the local police, to deliver the money safely. In many cases, Governments ordered the delivery of pensions and social grants to the homes of the beneficiaries and in several cases earlier than usual. The usage of cards to confirm the withdrawal via a mobile POS card payment device is popular. Doorstep delivery of cash occurs both in OECD member states (e.g.: U.K., Ireland, Italy, Poland, Singapore, as well as emerging markets: e.g. India, Pakistan, Kyrgyzstan, Kazakhstan, Moldova, Morocco).
Digitalization of payments and remittances accelerates. Virtual payment cards were launched last week by e.g. KazPost and Russian Postbank. These cards facilitate on-line shopping and on-line payment of bills as well as receipt or sending of remittances at low cost. Other Posts/Postbanks emphasize the usage of existing digital financial services (Uganda, Kenya, Slovakia, Serbia).
The pandemic precipitates the diversification of Posts. The disruption caused by the pandemic has halted airlines and parts of physical transport, cutting off Posts to major mail flows, and forcing them to diversify to other delivery services immediately. Especially in the developing world, Posts already faced marginalized mail flows, and suddenly leapfrog to delivery of demand-driven, much needed essential goods such as pharmaceuticals, cash, groceries or just SIM cards for mobile telephony to stay connected. Examples: Rwanda, Georgia, Armenia, Kyrgyzstan.
This article has originally been published at RemittancesGateway.org