How we make payments has changed exceptionally over the last couple of decades. Cash no longer reigns supreme for many, with most now using a card or other forms of electronic means.
According to a Forbes article, many markets have gone contactless, with some even reaching an adoption rate of higher than 90%. The article noted that the U.K. (93.4%), Australia (95%), and Singapore (97%) are among the leaders, while the U.S. is almost at 90%, growing at a compound annual growth rate of 19.1% until 2030.
It’s also been noted that the contactless payment market is expected to grow significantly in revenue across the U.S.’s e-commerce industry. Digital wallets are expected to account for more than 50% of all transaction value in 2025, while two years later, total contactless transactions should reach a value of $10 trillion globally, up from $4.6 trillion in 2022.
Why Have Contactless Payments Become Popular?
When it comes to making a payment, consumers want to do so without trouble. They want transactions to be made instantly and securely. They don’t want the hassle of inputting all of their details, as this can take time, or they may not always have their details readily available.
Contactless payments can take various forms. While most will initially think of card payments and tapping on a terminal, they can also include digital wallets, e-wallets, mobile apps, and cryptocurrency.
As we continue to use our smartphones to access the internet for most things, contactless has become the way forward. That’s why so many industries have managed to incorporate contactless and virtual methods into their offerings.
E-commerce sites offer many options to make life easier when paying for goods. Industries that offer services make paying bills easier by offering numerous methods to pay with. Even the entertainment sector has incorporated various contactless payments into their options to give people a seamless experience. Gamers who enjoy pay-to-play games have benefited greatly, as they can use different options that may allow them to take advantage of a promotion like a casino welcome bonus or other incentives that can be obtained to enhance their gaming sessions.
Contactless Payments Are The Future
Changes in consumer behavior regarding how we want to pay for services have forced businesses to ensure they can provide these options. If they can’t, they can face trouble due to the several benefits payees can obtain. This may include a declining customer base, as they may not be an attractive option, especially as people want to make payments as effortlessly as possible.
As mentioned, physical cash doesn’t appear to be a favorable option for many. Some find going to an ATM and withdrawing cash an inconvenience, while carrying cash runs the risk of losing it. There is also hardly any need for it, as most payments are now made digitally due to the speed of transactions or the shift in businesses going online.
There can be some concerns around contactless payments, with security among them. The biggest issue with card payments using the touch feature is that anyone can essentially do it and spend, even if it’s not their card. We may need new technologies to be developed in the future to ensure this method is as safe as possible.
Nonetheless, it’s unlikely that we’ll stop using contactless payment methods any time soon, especially when some of the world’s main economic powers have already adopted them in vast quantities.
