What Are the Leading Factors for Rapid Adoption of Contactless Payments?
When was the last time you used a contactless payment card? They’re not just for online transactions anymore, you can now use them at the checkout counter in your local stores.
But what are some of the reasons for this sudden increase in popularity? And where does it go from here? Let’s look at why so many people love using contactless payments and why they’ll only become more popular in the years to come.
They’re More Convenient
Contactless payments are so convenient in today’s world. They don’t require you to pull out a card, enter your PIN, sign, or carry cash and change.
You can just tap and go. That’s it!
They’re More Secure
There’s no denying that contactless payments are more secure than cards and cash. This is in large part due to the lack of any physical card or cash involved in the process at the point of sale system.
This makes it harder for criminals to steal your data or compromise your identity. When you pay with a PIN, your information can be stolen with a skimming device. These can be found at ATMs and gas pumps, as well as other places where you swipe your card.
And if someone has access to the numbers on your card, they can easily steal money from it at an ATM, via online purchases, or using a credit card processing machine refitted as a skimming device.
But even if you never use a debit card and instead pay with cash, it’s easy for people to see how much money you have on hand. So, you need to be cautious on how much you carry at any given time.
Contactless payments don’t have this problem because there’s nothing visible being exchanged between buyer and seller when they communicate.
Instead, contactless transactions use radio frequency identification technology (RFID) that sends encrypted information between devices placed near each other within close range. This means no one else knows anything about those transactions except for both parties involved in them.
Many People Are Receptive to New Technology
People have a desire to be first. This is especially true for younger generations, who often want to use new technology before it becomes mainstream.
This means that if you can offer a new contactless payment option that’s easy and convenient, your business may be at an advantage in attracting younger customers over your competitors who don’t yet accept contactless payments.
The Pandemic Has Led to More Cashless Payments
During the pandemic, it was important to keep a safe distance from others and reduce contact.
Cash leads to more physical contact between two people, it’s also traded between multiple parties spreading germs and possible illness.
Contactless payments are a great way to reduce contact and avoid pressing the keys of a chip and pin device. According to research by Fiserv, 1 in 4 consumers changed payment methods during COVID. The same survey showed that 42% thought it was the safest way to prevent COVID.
Contactless payments also have the bonus of reducing the risk of card skimming and other forms of fraud while also reducing the amount of cash you need to carry around.
The pandemic is now largely over. However, the cashless mindset is here to stay.
Payment Companies Have Capitalized on the Need for Faster Transactions
Payment companies have capitalized on the need for faster transactions. Contactless payments decrease transaction times. Devices like the Apple Watch allow for even quicker payment with the quick flash of the watch against a payment terminal.
This shows that more people are using contactless payments than ever before as they become more comfortable with them and are looking for faster ways to pay without having to dig into their pockets or wallets for their cards or cash every time they want something at a store counter or cafe countertop (or anywhere else!).
Contactless Payments Harnessed the Current Trend Toward Mobile Payments
Mobile payments are a growing trend, and contactless payments are a natural fit for this type of payment method. Mobile devices are being used more often in everyday life, so it makes sense that people would want to use their mobile devices to pay for things instead of carrying cash or credit cards around with them.
You can even use contactless and mobile payment wallets with gift cards. This means loyal customers never lose out on loyalty points for forgetting their cards.
The convenience factor is one of the major benefits of contactless payments over other methods. They eliminate the hassle associated with carrying cash or cards, which can be lost or stolen easily.
Contactless Payments Help Merchant Services
Contactless payments are here to stay, and they’re only going to get faster. While there are a few more technical hurdles to cross before they become truly mainstream (like making them compatible with all phones), the future looks bright for contactless payments—especially since they make transactions so easy.
For more on merchant services and how we can help your business be sure to contact us today.
