'Germ concern' is the catalyst to put contactless payments over the top
With over more than 50% transactions globally being contactless, the public should be able to witness tremendous future growth. There are several things merchants, banks and consumers should expect from the ongoing and permanent progression toward contactless transactions.
Since the world is heading toward "contacting less" with cash and pennies, it's no surprise that physical wallets would eventually disappear from the global market. The main driver is large-scale proliferation of smartphones and online banking.
There are more than 51.5 billion smartphone users worldwide, out of which nearly more than 35% have been making use of mobile banking for carrying out transactions for vivid purposes. A study conducted in March suggested that about 30% of the consumers used contactless payment methods for the first time during the pandemic.
Before the pandemic, only the germaphobes were concerned about coming in contact with cash transactions. That scene has completely turned upside down. Almost 90% of the global population is now quite worried about making transactions in money and pennies, as these might bring home viruses and infections.
Addressing these concerns, people are now inclining more toward the adoption of contactless payment methods, including digital payments and e-wallets, adding to the massive industrial growth in the coming years.
Although contactless payment is a fabulous way of initiating payments for time-strapped people, its associated security threats would lead people to think twice before choosing these options over simple cash transactions. However, contactless payments are showing no sign of slowing down in the near future, even after the COVID-19 pandemic subsides.