News • 20.05.2020

COVID-19 accelerates adoption of contactless payments

Consumers around the world are switching to contactless to help with social distancing

Client using contactless payment
Source: Bildagentur PantherMedia / Andriy Popov

RBR’s Global Payment Cards Data and Forecasts to 2024 reportreveals how increased contactless card issuance and acceptance combined with changes in consumer behaviour are driving growth in contactless payments. 

In 2018, the number of contactless payments worldwide increased by 72 percent to reach 70 billion. This accounted for 15 percent of the world’s card payments, a share which will increase significantly over the next few years, with COVID-19 accelerating the pace of change.

Not all countries are at the same stage in their contactless journeys

Although contactless payments are increasing worldwide, different countries are at various stages on the path towards contactless adoption. Despite the first contactless cards appearing in the UK as far back as 2007, they are relatively new in countries such as Indonesia and Japan. As well as reducing the need for consumers to touch payment terminals, there is the added advantage of shorter transaction times – particularly useful for payment on public transport. In countries such as the UK and Australia where contactless can be used on public transport, such payments make up a significant proportion of card payments. North America is interesting in that there are  notable differences between Canada and the USA; where as Canadians are amongst the most enthusiastic adopters of contactless globally, consumers in the  USA have been slower to embrace it. However, as the COVID-19 pandemic has spread and consumers and merchants seek quick and low contact ways of paying, the number of contactless payments in the USA is surging. Such changes in consumer behaviour are likely to become permanent. 

Increased contactless spending limits as a result of COVID-19

In order to prevent fraud on stolen cards, contactless payments are subject to a spending limit, although contactless mobile payments often have higher limits than those made with cards, as they involve a fingerprint, facial scan or PIN keyed into the device. Contactless payments are typically used for low value payments such as drinks and snacks, and as a result have been displacing cash at the point of sale. According to RBR, the average payment on a contactless card in2018 was just US $18, much lower than US $66 for cards in general. As security concerns begin to dissipate, consumers are using their contactless cards for higher value payments. Furthermore, the COVID-19 crisis has seen the raising of the contactless limit in a number of countries to facilitate quicker and easier payments, for example from £30 to £45 in the UK; consumers will not want to see a return to the relative inconvenience of lower spending limits in the future.

Increased merchant and consumer demand drives contactless acceptance and issuance

RBR’s research shows that contactless   acceptance  is  also  growing,  with  the  number  of  EFTPOS terminals which allow contactless payments rising by 60 percent in 2018 to reach 66 million, equivalent to two thirds ofterminals globally. China saw the number of EFT POS terminals which can accept contactless payments more  than  double, and  the government’s mandate for  terminal  upgrades and contactless card issuance drove a 97 percent increase in contactless payments. Although the number of contactless cards globally increased by 23 percent, they still only accounted for 40 percent of the total number of payment cards. The COVID-19 crisis  will  accelerate the issuance of contactless-enabled cards and the upgrading of EFT POS terminals in response to increasing demand from both consumers and merchants alike. 

Daniel Dawson, who leads RBR’s cards research, said “The pandemic has shone a spotlight on the benefits of contactless as a resilient payment channel, enabling quick and safe payments at the point of sale at a time when social distancing is a must. This will only accelerate growth in contactless as consumer preference for more convenient payments persists long after the crisis subsides”.

Source: RBR

related articles:

popular articles:

Thumbnail-Photo: Bright future for Copenhagen-based Irma Store...
15.06.2020   #electronic shelf labels (ESL) #price labelling

Bright future for Copenhagen-based Irma Store

Automatic price updates with ESL

Irma Smedetoften is located in the heart of Copenhagen's Northwest Quarter. The area around the Irma store is part of an urban development project where, among other things, the local trade district will be strengthened. Irma has also recently ...

Thumbnail-Photo: The safety barrier you need right now
02.06.2020   #customer satisfaction #security

The safety barrier you need right now

Poindus ProShield is an effective protection screen.

Safeguards like social distancing implemented in-store during staff-customer interactions are enhanced with our ProShield, an effective protection screen that provides an additional layer of protection for cashiers & customers at the point of ...

Thumbnail-Photo: Automated delivery services sprang up during China’s Covid-19 lockdown...
03.06.2020   #coronavirus #delivery

Automated delivery services sprang up during China’s Covid-19 lockdown

Retail technologies at Smart Retail Expo (SRE 2020)

In response to the Covid-19 outbreak, China’s retail giants JD.com and Meituan both deployed their smart deliver robots/vehicles in heavily locked down cities, such as Wuhan and Beijing. Insiders believe automated delivery technology will be ...

Thumbnail-Photo: CCV announces consolidation of its international payment division,...
02.07.2020   #mobile payment #payment systems

CCV announces consolidation of its international payment division, focuses on market innovations

Under the flagship of CCV GmbH, the company plans to bring its innovation into specific international markets

CCV Group B.V. has announced that all of its international business activities will now be consolidated and run within its Germany-based division - CCV GmbH. CCV GmbH will carry out the activities of the former CCV Deutschland GmbH and CCV Easy, a ...

Thumbnail-Photo: World’s first convenience store retrofitted with AI technology...
14.08.2020   #video surveillance #video cameras

World’s first convenience store retrofitted with AI technology

Standard Cognition to provide Circle K with autonomous checkout

Standard (“Standard Cognition”) announced that Alimentation Couche-Tard, a company that operates close to 14,500 convenience stores worldwide, including under the global brand Circle K, has selected Standard to pilot touchless, ...

Thumbnail-Photo: Stay safe with VariPOS
11.05.2020   #cashpoints #terminals

Stay safe with VariPOS

How technology helps – Stay safe at the point of sale

Technologies for product identification and payment authentication are great for improving the customer experience with speed and accuracy, but these technologies are also being seen as beneficial in the wake of the Coronavirus Pandemic. ...

Thumbnail-Photo: eBay’s management of payments begins scaling globally...
24.07.2020   #online trading #e-commerce

eBay’s management of payments begins scaling globally

Payments initiative reaches a milestone as the Operating Agreement with PayPal expires

Starting today (July 20th), eBay will begin expanding its management of payments around the globe. The company embarked on its journey to manage the end-to-end payments process on its marketplace platform in late 2018 and is already seeing success ...

Thumbnail-Photo: Electronic shelf labels: photo store introduces new technology...
09.05.2020   #electronic shelf labels (ESL) #electric displays

Electronic shelf labels: photo store introduces new technology

Cooperation between Photografica and Delfi Technologies

Photografica is a professional photography store in the heart of Copenhagen. Here, personal counseling and service play a crucial role. To the benefit of both employees and customers, the store has installed electronic price tags.With a central ...

Thumbnail-Photo: Zebra Technologies to acquire Reflexis Systems, Inc....
10.08.2020   #POS communications #workforce deployment

Zebra Technologies to acquire Reflexis Systems, Inc.

Acquisition helps Zebra empower every worker at the edge to execute the best next action

Zebra Technologies Corporation (NASDAQ: ZBRA), an innovator at the front line of business with solutions and partners that deliver a performance edge, today announced it intends to acquire Reflexis Systems, Inc., a ...

Thumbnail-Photo: Digital access controls support distancing requirements in the era of...
06.07.2020   #brick and mortar retail #retail

Digital access controls support distancing requirements in the era of Corona

Essential staff are relieved and the risk of infection is reduced

Since the beginning of the pandemic, larger supermarkets and discounters have been imposing entrance restrictions to ensure that only a certain number of people are allowed within their Stores. Usually the access management is carried out by ...

Supplier

SALTO Systems GmbH
SALTO Systems GmbH
Schwelmer Str. 245
42389 Wuppertal
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen
Reflexis Systems GmbH
Reflexis Systems GmbH
Kokkolastr. 5-7
40882 Ratingen
POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen
Adasys GmbH – a Poindus Company
Adasys GmbH – a Poindus Company
Max-Planck-Straße 10
70806 Kornwestheim
Apostore GmbH
Apostore GmbH
Uferstraße 10
45881 Gelsenkirchen
Poindus HQ - Taiwan
Poindus HQ - Taiwan
5F., No.59, Ln. 77, Xing-Ai Rd.,Neihu Dist.
Taipei City 114
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
CCV GmbH
CCV GmbH
Gewerbering 1
84072 Au i.d.Hallertau