Retailers have been slow to adopt contactless payments but demand is rising because of COVID. That’s the finding from Visa’s Back to Business Study 2021 Outlook . The study found:
56% of consumers have used contactless payments whenever possible in the past three months making it the biggest shift in shopping habits.
65% of consumers say that post-vaccine, they would prefer to use contactless payments as much as, or even more than they are currently.
16% of consumers say they will not revert to their old methods or payments even after a vaccine is widely available.
74% of small businesses expect consumers to prefer contactless payments once a vaccine is widely available.
44% of small businesses are investing in new technology for contactless or mobile payment acceptance.
Millennials are the age group most concerned with keeping their card clean at a whopping 73%, while Gen Xers came in second (61%) and Boomers third (50%).
And closer to home, our own Product Manager, Melanie Wynkoop says she uses contactless payments to keep herself and her family safe when running to the grocery store, gas pump and appointments. “Contactless banking has given my husband and me peace of mind that we’re doing our part to keep our family and our fellow citizens safe, along with keeping our banking information private and secure. Chesapeake Bank’s digital wallet compatibility has been a game-changing solution for our family.”
WHAT ARE CONTACTLESS PAYMENTS?
Contactless payments allow consumers to store debit or credit cards in their mobile wallet app on cell phones. When making a payment, users can wave at or tap their phones onto a device that uses Radio Frequency Identification (RFID) or Near Field Communication (NFC). The device will wirelessly pick up information to pay for the transaction.
BENEFITS OF CONTACTLESS PAYMENTS
Cleaner and healthier spending. With contactless spending, users never have to hand phones to store clerks and when used as a credit vs debit you won’t have to touch a dirty machine. They simply wave it in front of the reader at checkout.
Going contactless is easy. Most people carry their phone in a location that’s easy to access. Having a Chesapeake Bank debit card stored in the mobile wallet means no fumbling with a physical wallet and searching for the card.
More Secure Transactions. Tap-to-pay is more secure than other forms of card payment because phones store an electronic version of a card. Card numbers aren’t visible to anyone lurking over shoulders, and there’s no worry about skimming devices with NFC readers, reducing fraud risk.
Rewards still apply. When the Chesapeake Bank debit card is the first card stored in the app, it becomes the default payment for transactions. Consumers continue earning five cents cash back on every transaction.
Ahead of the trend. The same Visa study (above) shows that other countries are ahead of the U.S. in this technology. In some cases consumers may only find contactless kiosks while traveling abroad.
HOW TO GO CONTACTLESS.
Consumers: Set up your card in your mobile wallet. Ask merchants if they accept contactless payments and pay online or in-app wherever possible. Keep your payment information up to date on other payment wearables (such as your Apple Watch and Fitbit) and stay informed about wearable trends.
Merchants: Reach out to our Chesapeake Payment Systems team to see if your equipment is compatible or to determine what you need to make the switch. Surprisingly, it’s not a big investment. We also offer free decals and acrylic displays so that consumers can easily see your acceptance.
Erin Johnston, Direct Program Manager, Chesapeake Payment Systems, says contactless payments are now a commonplace practice that aren’t going away. “Customers enjoy the safety and security of this technology tool, and the adoption of contactless payments for businesses is a must in order to stay relevant with current payments trends.”
