The Rise of Contactless Payments - Trends and Tools One Should Know

Payment technology is evolving at a very fast pace, things are becoming more convenient, secure and faster. Contactless payment technology allows one to pay for goods and services purchased with just a tap on the payment terminal. Physical contact involved will be minimal, making it a more hygienic system. Millions of people around the globe utilize contactless payments every day. They are quick, easy, and look cool.

Businesses need to adopt new age technologies like contactless payment systems so as be relevant in the competitive marketplace. With this technology, businesses can offer a smoother and faster customer experience.

The Contactless Payment Boom

Contactless payment systems really are everywhere now. From retail stores to gas stations to metro rides to hotels and resorts, they are widely used everywhere. The convenience of tapping and paying is unmatched, it now is like the new norm. The value of these payments is expected to cross $10 trillion globally by 2025. In places like the UK, nearly 9 in 10 in-person card transactions are now contactless. And in regions like the Middle East, India, and Southeast Asia are seeing massive growth too

How Contactless Payments Work

So what is actually happening when you tap your contactless card to pay. Most contactless payments work using NFC (Near Field Communication) technology. NFC allows devices to communicate only when in close proximity, about four centimeters. So when you bring your contactless cards near the NFC enabled payment terminal, the payment transfer happens in a secure way. For smaller amount payments, pin is not required.

NFC powered contactless payments can be executed using

• Contactless cards

• NFC supported Smartphones

• Smart wearbales like smartwatches

Key Trends Driving Adoption

Several big trends are making contactless payments more popular than ever,

Time saving

They are very fast, NFC payments of smaller amounts dont even need pin to make payments. Making them super fast and convenient.

Mobile Friendly Approach

Smartphones are widely used across the globe, most of these contactless payments can be directly made through their smartphones. So this mobile friendly nature made them super popular.

Health and hygiene

Contactless payment systems dont need much physical contact, making them a more hygienic option. New age people are more Health and hygiene conscious, making contactless payments their preferred payment method.

Popular Contactless Payment Methods

Contactless cards

Contactless cards also known as tap and pay cards are very popular nowadays. Most of the card providers like Visa, Master card, Rupay Card, Maestro, etc, provide contactless credit cards and debit cards. They are a very quick and convenient way to complete the payments.

Mobile Wallets

Mobile wallets like Google Pay, Pay, Apple Pay and Samsung Pay allow one to make NFC payments, QR code payments, etc, in a simple and faster way. They allow users to store card and account information securely on their smartphones, allowing faster payments. To add an extra layer of security, they utilize biometric authentications like Fingerprint scanning and facial recognition technology.

Wearables

Smart wearables like Smartwatches and fitness bands have also become smarter enough to make payments. They are powered by NFC technology, so just tap on the payment terminal to make payments.

QR Code Payments

Another popular method is QR code payments, especially popular in Asian countries like China and India. With QR code payments you have to scan the QR using your mobile wallets and complete the payments. They are very simple to use and cost effective payment methods for small businesses. You just need to print the QR code and paste it somewhere near the counter.

Use Cases

Contactless payments are not just for convenience, they are incredibly versatile. Here are a few places where they are widely used

Retail Outlets

Retail outlets like supermarkets, and fuel stations are widely utilizing these modern payment systems for faster checkouts, shorter lines, and happier customers. Contactless payments do work great in stores of all sizes, from boutiques to supermarkets.

Transportation

Whether in buses, subways, metros, and taxis, tapping to pay is becoming the standard in major cities around the world. No tickets, no tokens, just tap and ride.

Hospitality

From quick service cafes to luxury hotels, contactless payments speed up transactions and improve guest experience.

Benefits for Businesses

Adopting contactless payments is not just for customer satisfaction, they are beneficial for businesses and customers alike. Some of the major benefits are

• Faster checkout

• Higher customer satisfaction

• Reduced cash handling

• Better data insights

Contactless payments are becoming very popular, so for businesses adopting these modern payment systems is a must to stay relevant in the market. Customers expect these quick and convenient payment systems. Providing these payment systems is easier than ever, so this is the right time to go contactless.