Opportunities in chaos: Digital payments industry shoots to 6.6 trillion
Opportunities in chaos: Digital payments industry shoots to 6.6 trillion Photo By: Jonas Leupe on Unsplash

The global pandemic has ripped normal life away as we know it. What was convenient and made sense before, does not work under the current circumstances. One of those things is our use of technology and our general interaction with it. In supermarkets for example, people do not want to queue any more; enter Amazon with their AmazonGo shops, Uber Eats, curbside collections etc. There’s actually been a lot of advancement in the tech sector encouraging social distancing. Contactless payment systems are especially intriguing.

Contactless payments have always been in use, but their popularity increased significantly when the chaos hit. As reported by Finaria.it, the industry was expanding at a 16 percent year-on-year (YOY) rate prior to COVID19, but once the pandemic struck, the rate accelerated to almost 22 percent. This is because it is a more sanitary approach; no need to touch POS buttons etc. These payment systems are also convenient as they are more secure and they provide a seamless experience for the customer. This is why the digital payments industry has seen a boom in the last year-and-a-half, and will constantly do so for a long while to come, we believe.

This growth trend in the payments industry is global. Even those who sell payment systems and equipment are benefiting. Officeworks is one such retailer, selling contactless payment equipment to aid other retailers’ and small businesses’ transition into what is now the standard. Given the rise in popularity of contactless bank cards, mobile payment apps are also mushrooming. Apple Pay is a great mobile payment example. Since its establishment, the company has grown at an exponential rate. Users like how simple it is to use and how secure it is.

If your company isn't already accepting contactless payments, but you are considering introducing them, please - keep reading. We will give you some examples of the different types available so that you can make an informed decision.

  • Tap and Pay / Tap and Go

This method works with your debit or credit card. When you are checking out your items at the payment point, instead of inserting your card in the POS device, you hover it an inch or two above the device, and using a system called Near Field Communications (NFC), the device will accept the contactless payment and your transaction will go through.

  • Smartphones, Smartcards, Wearables.

With this contactless payment method, your credit/debit card has to be linked to a payment app - also called a mobile wallet. Depending on the device being used, you will need to authenticate the payment for it to go through, either by fingerprint or face sensor. Examples of mobile wallets include Apple Pay, Samsung Pay, or Google Pay.

There are many advantages to using contactless payment methods. These include but are not limited to;

  • They are hygienic

Considering how we now have to avoid touching surfaces and have to constantly sanitize our hands, a contactless payment system makes for the more sensible option.

  • They are user-friendly

You do not require any technical know-how when using this technology. It is simple enough even for the otherwise techno-challenged.

  • They are fast

There is no need to enter pin codes or count the cash, both of which would normally slow the checkout process down.

  • They are secure

You can set your limits to small amounts to prevent more significant transaction amounts from going through if your card or phone is stolen. Built-in protection ensures that the same transaction doesn’t occur twice or by accident.

  • They improve overall customer experience

Since it is a seamless and simple process, customers can check out their goods or pay for services with as little fuss as possible, making it a pleasant experience.

Research is showing that the use of contactless payments is set to increase even more in the next few years going up to 2028. The digital payments sector is expected to reach $10.5 trillion in the next four years. Contactless payments are therefore a wise and necessary way to go for any business.