During the last few years, the way we pay for everyday products has changed dramatically. After saying goodbye to the signature, the era of Chip and Pin transactions has given way to contactless methods, leading to faster payment processes and the first steps in the creation of digital wallets.
It would appear that contactless is here to stay, with new technological innovations forging the way to a new payment future. But, exactly what will this future look like? And what does it mean for your business and your customers?
There has been speculation that as contactless becomes more inventive, credit and debit cards may become a thing of the past. But, figures show that in the first half of 2016, more payments were made using contactless cards than all of 2015. This is a trend that is predicted to continue growing at faster rates, as more banks and customers adopt contactless cards.
However, the cards we may soon be using are very different from those currently in circulation. This could include an all-in-one option, that contains the information of all of your bank accounts and cards. Or even a dissolvable credit card, that if stolen, can be dissolved when a signal is sent.
Of course, contactless payments refers to more than credit and debit cards. The use of digital wallets is slowing increasing, with experts predicting mobile phones will generate $503 billion in payments by 2020.
At the moment, there are only a handful of companies out there offering mobile wallets. However, more are in development. This has seen a rise in the creation of more non-traditional app and only-only banks, companies that specialize in contactless mobile payments.
In addition to new cards and apps, wearable tech is still continuing to grow. What was previously seen as a fad, has seen the development of increasing numbers of smart watches, bracelets and more recently, rings.
Retailers and developers have taken wearable tech to a whole new level with contactless clothing. You could soon be wearing a jacket, gloves, or suit that contain an embedded chip for on-the-go contactless payment.
So, Should Your Business Embrace Contactless?
Contactless payments have brought about a lot of questions, for both businesses and consumers alike, such as: Is it a short-term trend? Will they cost a lot to implement? In short, it does seem like contactless will soon reign supreme, meaning now is great time for your business to upgrade to a new card terminal to ensure your company can remain competitive.