COVID-19 Becomes US Contactless Payments Catalyst
COVID-19 has consumers and merchants rethinking the way shopping and payments are done. Paying with potentially tainted cash was cautioned against early on by the World Health Organization. The obvious alternative is electronic payments – especially those that are contactless.
In much of the world, consumers are using contactless cards to “tap and go” with limited physical interaction. In the US, dual-interface chip cards haven’t yet been widely issued and consumer awareness and adoption of contactless payments is relatively low. That is, until COVID-19.
In such uncertain times, exchanging cash or using a PIN pad when shopping creates unnecessary risks that many US consumers aren't willing to take. Even if consumers don’t have a contactless card from their banks, many have learned that their smartphones and even some watches can be used to make NFC-based contactless payments which are fast, secure, and reduce or eliminate physical interaction.
NMI data reveals that from April through July 2020, US contactless payment transactions from cards and NFC devices increased 178%.
Although no one can predict the exact long-term progression contactless payment adoption will take in the United States, we expect the use of contactless payments to rise significantly. This creates a major opportunity for ISOs and software developers catering to merchants.
To look deeper into US contactless payments trends and the opportunities created for solution providers like you, NMI recently published a detailed white paper. Click here to access the paper and learn how you can provide your customers with next-generation payment solutions that are feature-rich, while also safe to use during these unprecedented times.