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How COVID-19 is Pushing Consumers towards Contactless Payment?

Banking CIO Outlook | Monday, September 28, 2020

As the improvement in connectivity and infrastructural groundwork evolves in the U.S., consumers will soon shift towards contactless payment permanently for a new and enhanced user experience.

Fremont, CA: The U.S. payment landscape has faced several hurdles when it comes to contactless adoption. However, it is anticipated to gain traction through 2020 because of the growth of contactless-capable point of sale devices, the availability of contactless cards, and the increase of mobile wallet options. The introduction of large-scale use cases like New York City’s contactless subway is generating more consumer interest in the contactless payment methods. Top 10 Customer Experience Solution Companies - 2020

COVID-19 also became a disruptor across the payment scene, accelerating the use of contactless payment methods while marking a shift in consumer behavior and showing its potential to have a long-term impact. Many consumers have shifted towards contactless options such as mobile phones, contactless debit and credit cards, and smartwatches to prevent spreading or contracting the virus. Most stores are also encouraging customers to use contactless payment to decrease the virus’ spread.

This shift of contactless payment, as research suggest, will probably develop a sustainable change in attitudes even after the restrictions concerning the pandemic have been removed.

Mobile Wallet Usage on the Rise

The combination of mobile technology’s growth and repeated usage of mobile payments during the pandemic can allow these seamless methods to be normalized among U.S. customers. With the growing use of mobile wallets and other contactless methods, consumers will soon refuse to shop in places where contactless payments aren’t accepted, not just for public health concerns but because of new preferences.

Contactless Shift Compounded by 5G Networks

5G technology will also be another factor transforming the payment landscape. 5G will help reduce the time between the payment made and confirmation of that payment for consumer transactions by removing connectivity issues throughout the transaction process. The high speed and connectivity will help promote digital payment methods, enhance the consumer experience, and lead to more adoption of contactless methods.

See also: Top 10 VPN Services - 2020

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