Contactless payments are becoming increasingly popular among consumers. Spurred by the COVID-19 crisis, a growing number of consumers are deciding against physically inserting or swiping their credit and debit cards and instead paying via contactless cards and digital wallets on their mobile phones.
According to a Mastercard survey, just over half (51%) of Americans are using some form of contactless payment, including tap-to-go cards and Apple Pay, Google Pay, and Samsung Pay apps on their phones. This is echoed by the research firm Capgemini that reports that digital payments overall grew by 53% in 2020.
What types of contactless payments are consumers using? Capgemini’s World Payments Report 2020 notes that consumers are trying all different methods. Capgemini says that 43% have tried contactless cards, 35% added a credit/debit card to a digital wallet on their phones, and 27% experimented with QR code payments.
How are consumers using contactless cards and digital wallets? According to Mastercard, the overwhelming majority (85%) use contactless payments for grocery shopping. In addition, 39% use contactless payments for pharmacy items, 38% for general retail, and 36% for quick service restaurants and fast food.
Why are contactless payments on the rise? Mastercard’s survey found that 50% of consumers are concerned about the cleanliness of signature touchpads, while 72% just want to avoid signatures completely.
Is your business capable of accepting contactless payments? If not, contact your Higher Standards expert advisor to learn more about our contactless payment solutions from Clover and other providers.