Contactless Payments Shifting The Paradigm

The Covid-19 pandemic has increased the use of contactless card payment methods. Cards have made up 79% of contactless transactions in 2021. Juniper Research states that global contactless card transactions will increase to $2.5 trillion this year from $1.7 trillion in 2020.

Research found in Contactless Payments: Trends, Opportunities and Market Forecasts 2021 - 2026 claims that this increase has the ability to change the payment paradigm. This research also discovered that this growth has been utilized by previously underdeveloped markets, including the United States and Germany, and that these changes may be permanent.

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This payment method has become favored by the majority of consumers for its convenience and widespread incorporation from retailers. The U.S. is projected to see transaction growth of 136% from 2020 and 2021, along with 300% growth in the next five years.

These changes have altered the need for cash and have given card issuers major opportunities to gain market share. These shifts are also popularizing biometric payment cards, as consumers look for a convenient yet secure payment method. Biometric cards are primed to undergo pilot schemes and accelerated development, providing banks and issuers a way to stand out from the crowd.