Covid pandemic accelerates contactless card usage trend
Global contactless card transaction values will reach $2.5 trillion in 2021, from $1.7 trillion in 2020, with cards retaining the majority share of overall transaction values at 79% in 2021.
That’s according to a new report from Juniper Research, which finds that the coronavirus pandemic has significantly accelerated an existing contactless card usage trend, and these value increases will be sustained beyond 2021.
There has been increased use in previously underdeveloped markets such as the US and Germany.
The US will see transaction value growth of 136% between 2020 and 2021, with major US retailers rolling out contactless acceptance and consumers enjoying the added convenience offered by touch free card payments.
Biometric cards
Recent pandemic driven contactless transaction limit increases have provided opportunities for biometric cards to tap into the trend towards secure, convenient, and hygienic payments.
Although still niche, biometric cards are set to see more extensive pilot schemes and wider deployments.
Juniper Research says that they offer an increased value proposition and present a way for banks and issuers to provide an innovative offering and differentiate themselves from the competition.
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