Contactless payments are an electronic payment technology of the next generation. In this kind of payment, consumers do not have to hand their card over. The entire transaction is electronically completed, and they do not have to part with their card. This is a securer, easier and quicker way of payment. It is a fact that many customers do not like to carry cash in their pockets and are also wary of giving a credit card over to a stranger, due to credit card fraud risks becoming commoner. Contactless payments are the best alternative in such cases. Find out why this kind of payment is getting increasingly popular across the world today.
Securer
According to studies, it has been proven that 86% customers wish to carry less money. Most of them carry less than 20USD. A survey that was carried out by MasterCard and Ipsos in 2005 found out that customers were getting more and more comfortable with the use of credit cards, although they were still concerned enough about security problems while handing their card over. 91% users were found to feel securer when they were permitted to keep their payment card all through the process of payment.
This gave rise to contactless payment system, designed to be more convenient, faster and easier to use. In 2013, in Austria, this type of payment was introduced originally.
Faster
A study conducted across the country found that as many as 75% respondents do not want to wait in line for more than 5 minutes for buying items less than 25USD in value, and over 25% do not wish to wait for more than only 2 minutes. Payments of contactless form are speedier, and take just half or a third of the average transaction by regular credit cards or cash.
Widely present
After the introduction of this technology in 2013 in Austria, many banks in the country – having NFC technology enabled debit cards – adopted it. NFC-enabled terminals have also been brought out by a large number of retail chains out there.
With this type of payment system, the most obvious thing is that customers really love it. Thus, they use it more frequently when they have to spend. They end up spending more as well, which is also great for merchants. These are some of the main reasons why this kind of payment system is getting more and more popular these days.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin