Visa Threat Intelligence is an attempt to reduce fraud since hackers and foreign governments increasingly have targeted customer payment information. Visa credit cards are displayed in Washington Oct. 27, 2009.
Visa Threat Intelligence is an attempt to reduce fraud since hackers and foreign governments increasingly have targeted customer payment information. Visa credit cards are displayed in Washington Oct. 27, 2009.

Contactless transactions have become increasingly popular during the pandemic as Visa says tap-to-pay transactions grew 30% year-over-year.

According to a survey of small business owners in eight countries, nearly half of the customers said they prefer contactless payments for their safety. Another 48% said they would not shop at the store if contactless pay was not offered.

The survey found 67% of businesses have tried a new approach to meet consumer demand and keep their business on track during the pandemic and 78% of customers adjusted the way they paid.

“This shift to digital-first commerce and technologies like contactless payments has ushered in a new generation of consumer tendencies that will have ripple effects on the global economy for years to come,” the survey notes.

63% of respondents said they would switch to a new business if they installed contactless payment options.

56% of millennials said they are more likely to avoid shopping at a store that didn’t offer contactless pay compared to 44% of Gen X, and 38% of baby boomers.

Contactless pay was originally created for customer convenience, allowing them to tap instead of swiping a credit or debit card. The tap function worked both on cards and within apps on phones, allowing customers to load their cards inside their devices and have the payment method there--removing the need to take out their wallet to complete a transaction during the pandemic.

The popularity of this took off during the pandemic as contactless pay and curbside pickup became very popular as customers would pay for their food, groceries, and other necessities with mobile apps.

“When the pandemic came people didn’t want to touch surfaces, they didn’t want to pass over their credit or debit cards or punch in their pin on the keypad,” Andrew Laudato, chief operating officer of the health and wellness retailer at The Vitamin Shoppe told CNBC.

“As countries around the world continue to increase tap-to-pay transaction limits, contactless payments are here to stay and their adoption will accelerate,” Rajat Taneja, president of technology at Visa, added.