3 Reasons Why Contactless Technology is Gaining Momentum

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3 Reasons Why Contactless Technology is
Gaining Momentum
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3 Reasons Why Contactless Technology is Gaining
Momentum
Banking sector was one of the first to embark on
a digital journey. With the goal of delivering
convenient transactions to customers, banking
industry never shied away from new technology and
latest innovations. Facilitating door-step
transactions and eliminating the need to
physically visit a bank, the banking industry is
riding high on the digital transformation wave.
There has been a 360-degree evolution of banking
services from cash-based transactions to cashless
payments. Amidst all these changes, one thing
that has remained constant and has been
catalyzing this metamorphosis is customer
satisfaction and convenience. Driven by this very
factor, contactless payment technology is
emerging as a new way of transacting money. An
upgrade to the existing debit and credit cards,
contactless technology is equipped with
Near-field communication (NFC) chips that employ
radio frequency identification to process a
payment. The contactless payment technology
removes the requirement to swipe the card or
enter a pin. It simply requires proximity to the
NFC equipment for the payment to get initiated in
a highly-encrypted manner. Contactless technology
is not limited to the plastic cards only. It is
also extended to mobile wallets and smart
wearable devices. Apple and android manufacturers
are releasing upgraded phones embedded with the
NFC-enabled chip to keep up with the shifting
banking scenario. The recently launched Apple
Pay, Apple Card as well as Google Pay are among
the many options of this blooming
technology. Popularly known as the tap-and-pay
method, contactless technology is expected to
drive almost 190B in sales with number of
proximity mobile payment users growing to
approximately 75 Million in the U.S. by 2022. In
addition to being a propagator of smooth,
hassle-free transactions, contactless technology
opens up wider avenues for the wearables and
smartphone industry. The contactless payment
solutions have just started to gain acceptance in
the U.S. market, while other countries such as UK
and
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3 Reasons Why Contactless Technology is Gaining
Momentum

• Australia have been using the technology since
  years. Let us look at the three key reasons that
  are spearheading the popularity of contactless
  payment methods.
• The need for speed
• Speed is one of the main attractants of the
  contactless payment technology. The faster
  transactions backed by contactless solutions can
  help brick-and-mortar stores regain their
  customers who diverted to ecommerce platforms due
  to the long queues and slow checkouts at physical
  shops. By removing the friction at the point of
  sale, the contactless payment method optimizes
  transaction speed and allows businesses to serve
  more customers in a shorter frame of time.
  Contactless payment can effectively reduce the
  average time spent at a POS terminal by 30 to
  40, thus, making it a preferred choice among
  businesses and customers alike. The exponential
  rise in the number of contactless cards across
  the U.S. reflects the digitally-inclined user
  behavior demanding faster pace, higher
  efficiency, and greater security.
• As per Bob Legters, Chief Product Officer of
  payments and banking product lines at FIS,
  Contactless is a stepping stone into a digital
  interaction, and its changing the way you
  interact with the POS. As of now, 70 of the POS
  terminals are now contactless-enabled and are
  performing 50 of the card transactions. Bob
  believes that implementation of contactless card
  can go live in as little as four to six weeks,
  and presses on the need to take the first step
  towards its adoption right now.

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3 Reasons Why Contactless Technology is Gaining
Momentum

2. Convenience is the ultimate driver MetroRio,
the Brazilian transit operator which runs the Rio
de Janeiro Metro, has partnered with Visa, Banco
do Brasil, Bradesco, and Cielo, and launched
contactless transit ticketing system supported by
the Visa Secure Access Module (SAM) technology.
MetroRio president Guilherme Ramalho said,
MetroRios goal is to innovate to make the lives
of our customers easier. In the modern dynamic
business scenario, customers demand a
smooth-sailing experience at every step of the
way. Customers today keep their convenience above
all and choose their preferred service provider
based on that. Having this in mind, businesses
today need to take a pragmatic approach while
developing innovative solutions for their end
users. Contactless technology epitomizes this
strategy by obliterating queues and supporting
quick transactions for imparting the
best-possible experience to the customers. Read
Full Blog at https//www.cigniti.com/blog/contac
tless-payment-technology/
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