Will Cash Payments Disappear in the Future?
Whether it is the convenience of use or the transactions’ speed, contactless payment is gradually paving way for itself in this high-tech world. Among millennials, the trend of using contactless payment cards and phones is on the rise, as the awareness and benefits of going cashless are surging. Businesses are also taking up this novel payment method to empower their customers and capitalize on the future of business.
What is Contactless Payment?
Contactless payment is a technology based on Radio Frequency Identification (RFID) or Near Field Communication (NFC) technology. They are available in several types including credit & debit cards, smart cards, smartphones, key fobs, and other devices like wearable devices (watches, rings, etc.). In this novel payment technique, payments are carried out through a secure contactless system, for instance, Apple Pay, Fitbit Pay, Samsung Pay, Google Pay, or any bank mobile application that facilitates contactless transactions.
As per a study, it is predicted that around 53% of the worldwide transactions at the point of sale (POS) will be contactless within the coming 5 years. Contactless payment is already the favored choice of payment in several countries with these transactions accounting for around 50%. This is the case, for instance, in France, Australia, the UK, Spain, and numerous eastern European nations. In the U.S.A., after a slow implementation of contactless payment, in the beginning, the market has finally adopted contactless payment in recent years.
In the contactless payment sector, smart card or contactless card is considered the most used payment method. As per the latest report by Research Dive, the global contactless payment market is expected to observe marvelous growth and garner a revenue of $20,340.3 million by 2026.
However, it has been observed that credit card issuers have generally been slow adopters of contactless payment methods. Now, as this payment technique turns out to be progressively prevalent, credit card issuers are acclimatizing to it gradually. As the use of cash by consumers is reducing, they are pursuing safe and secure techniques to pay for their purchases. Hence, businesses must get acquainted with novel payment techniques, such as contactless payment.
Businesses that implement contactless payment systems are able to fortify customer trustworthiness and boost their business position. Implementation of contactless payment systems is also a method to decrease cash on hand and the responsibilities that come with managing that cash. These are some of the benefits of embracing contactless payment technology.
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Where Can Contactless Payments Be Used?
Consumers willing to use contactless payment methods can use this technology at most of the retail stores in the U.S. Usually, retail stores will point out — mostly at the entry — whether they accept contactless payments, such as mobile wallets. Also, several retailers, nowadays, have NFC-enabled payment terminals, and customers can understand this by seeing a Wi-Fi-like symbol.
Several foremost stores also have options for contactless payment in their apps. For example, Walmart’s app lets customers scan a QR code at the checkout and pay with a card linked to their account. Other stores such as Starbucks let customers make payments directly using their mobile apps.
Will Cash Payments Disappear in the Future?
Although there is an upsurge in card-focused payment transactions, the cash won’t vanish entirely. For particular demographics including old communities, cash is still deliberated as the monarch, particularly for those who do not have access to mobile technology. There are also a considerable number of adults who do not have the necessary access to banking services to enroll in contactless programs.
To sum up, contactless payment is new and stress-free — it is extremely suitable and speedy. And it is a trend that is gradually but positively gaining prominence! So the next time you shop at a store where they accept contactless payments, simply tap your card, knowing that your transaction is safe and fast. As nations across the globe continue to surge tap-to-pay transaction limits, contactless payments are here to stay and their acceptance will hasten in the coming years.
