What is contactless payment? And what are the advantages of using it?
What is contactless payment?
Contactless payment systems are based on RFID or NFC (Near Field Communication) technology. They come in different forms including credit and debit cards, smartphones, smart cards, key fobs or other devices, including wearables (watches, rings...). Payments are enabled via secure contactless systems such as Samsung Pay, Apple Pay, Google Pay, Fitbit Pay, or any bank mobile application that supports contactless.
A new study from Juniper Research has found that more than half (53%) of global transactions at Point of Sale will be contactless within the next 5 years. Contactless is already the preferred choice of payment in many countries with these transactions accounting for more than 50%. This is the case for example in the UK, France, Spain, Australia and many eastern european countries. In the USA, after a slow adoption initially, the market has finally opened up to contactless market over the past 6 to 8 months.
Within the contactless payment arena, the smart card or contactless card is by far the most adopted means of payment. According to a recent report, the global smart card market is expected to reach $65 billion by 2025 with banking representing about 25%.
What are the benefits?
4. Overall customer experience
5. For banks - Brand positioning and increased revenues