Coronavirus accelerates adoption of contactless payments
Consumers around the world are switching to contactless payments to help with social distancing during the coronavirus outbreak, according to RBR.
Its new report reveals how increased contactless card issuance and acceptance are driving growth.
In 2018, the number of these payments worldwide increased by 72% to reach 70 billion. This accounted for 15% of the world’s card payments, a share which will increase significantly over the next few years, with Covid-19 playing a major role.
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. In North America, meanwhile, there are notable differences between Canada and the USA.
Whereas 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, the number of Americans purchasing items in this way has surged.
RBR’s Daniel Dawson comments: “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.”
Tesco
Visa recently put out the following promoted tweet in the UK: “You can now use contactless for payments up to £45, in many stores. Shop securely with Visa. How You Pay Matters”.
This sparked a furious backlash with many Twitter users weighing in to lambaste Tesco for failing to follow the example of Morrisons, Iceland and Waitrose and increase the contactless payments limit from £30 to £45.
Tesco is carrying out a trial of the new limit in a small number stores, but it is currently unclear as to when this will be rolled out across its estate. In the meantime, it has been pushing its mobile payments/loyalty app.
“Staff claim that someone from head office has to go to the store and reset all the terminals at every checkout,” said one Twitter user.
“Sort it out so this applies for @Tesco. What's the point of social distancing efforts in store yet still having to touch the chip and PIN keypad?” another asked.
“Have to still use a pin pad for amounts over £30 and allowing families and couples into stores, again increasing the risk of spreading. Show some intelligence please Tesco!” fumed another.
