According to Global Market Insights, it was discovered that the global smart card market is anticipated to hit $65 billion by 2025. The smart card, also known as the contactless card, is unequivocally the most accepted form of payment.
The outbreak of the pandemic earlier this year has also driven many customers around the world to adopt contactless methods of payment. With countless millions working from home, more and more innovative technology is being adopted to keep communication and purchases, at a distance.
Contactless Payments Defined
Most contactless payment systems are based upon RFID or NFC (Near Field Communication) technology. They can come in the form of debit and credit cards, smart cards, smartphones, key fobs, even watches and rings. Payments can be activated through “secure contactless systems” like Apple Pay, Samsung Pay, Fitbit Pay, Google Pay, and any bank mobile application that supports contactless payments.
A research study carried out by Juniper Research has revealed that more than fifty-percent (53%), of Point of Sale transactions worldwide will soon become contactless in the next 5 years.
The Benefits Of Contactless Payments
The benefits of using contactless payments cannot be undermined. Cash and cards are slowly losing significance as digital payment methods (merging technology with rapidly developing consumer needs), are rapidly taking precedence. So what are the most important benefits that both customers and merchants alike can take advantage of by using contactless payments? Here are a few:
- It’s Quick
Contactless payments are estimated to be completed within 15 seconds and they are able to work twice as fast as regular cards. What greatly expedites the process is that there is no cash handling and less processing. With transactions occurring at such a faster rate, no long lines are likely to build up, moving customers quickly in and out of the store.
- It’s Safe
If you were ever to misplace or lose your card, you do have the options of either freezing your card or contacting your bank, who will dismiss and rectify any fraudulent payments. A built-in protection guarantees that the same transaction doesn’t happen twice by accident. If the information were to be stolen, the numbers from the card cannot be decrypted. This is because “unique numbers” are utilized for transactions that don’t correspond to the card numbers.
Also, every card has a small limit per transaction, that unless it’s altered, the customer receives protection from large-scale and unauthorized purchases.
- Enhanced Customer Service
Because contactless payments result in speedier, more secure, and seamless transactions, businesses will see a dramatic reduction in cart abandonment. Why? The average transaction value actually goes up when the customer is not limited by the amount of cash they are carrying. An efficient payment process also comes into play.
For most contactless transactions, there is no verification required. There is also no need to print out a receipt unless requested by the customer. All of this greatly reduces the time the customers spend at checkout.
Digital Payments Are Here To Stay
With ongoing efforts to stop the spread of the virus, more government officials worldwide are requiring citizens to continue social distancing. Also, with the uncertainty as to when all of this will end, digital payments seem to have gained a foothold on society worldwide. Contactless payments are definitely here to stay.