Due to the highly contagious nature of the coronavirus, more and more people all over the world decide to use contactless payment methods as they involve less physical interaction - customers can simply wave their smartphone across the reader to pay.
No-touch payments are encrypted, secure and very quick —transactions take just seconds. According to new research, even American users, who were generally skeptical of contactless payments, are now becoming more interested. For example, just in the first quarter of 2020 Mastercard’s contactless payment transactions jumped 40% .
The most popular technologies behind contactless payments are NFC (Near Field Communication) or EMV (Europay, MasterCard, and Visa). Both have already existed for years, but the coronavirus threat boosted the need for their widespread adoption.
The growing deployment of NFC technology by retailers is also expected to affect POS (point of sale) transformation. According to Berg Insight, more than 88% of the world’s POS terminals will be NFC-ready in 2024 to make sure that consumers can leverage the latest, most secure forms of payment wherever they go.