Due to the outbreak of Coronovirus, Payment firms are pushing for contactless payments. Read on to know more…
Some experts have said Coronovirus could latch onto currency the same way it is able to survive on other surfaces, such as doorknobs and handrails. Among those other measures they’re taking to stay safe, the people could also finally be ready to embrace digital wallets and contactless payments, after years of reluctance. Due to the outbreak of Coronovirus, banks and people have begun to reconsider the cash they handle every day as coronavirus spreads.
Payment firms are pushing contactless payments as government and consumers try to minimize the interactions between people and common surfaces to combat the spread of the virus. Contactless technology allows customers to pay by tapping their cards to a point-of-sale terminal. The cards are a faster alternative to chip-and-PIN payments, and require less physical interaction.
Contactless cards are embedded with a near-field communication antenna that can be used for proximity payments via radio waves. The card creates a dynamic cryptogram, or code, which is unique for each individual transaction.
Why Contactless Cards
Contactless limits cut down on the number of contactless transactions consumers can make because they can’t make purchases that exceed the value caps with only a tap. Raising the limits should encourage more consumers to make contactless payments, especially during the pandemic.
If card networks push for higher limits around the world and can make larger purchases with them, consumers may use them after the pandemic subsides – they’re already very popular in the UK and other European markets – out of habit or because they enjoy the convenience they offer.
However, there appears to be limited change in the contactless environment in the US so far, which could hamper adoption in the market. Contactless adoption has been slow in the US, and without a push from firms to put out more contactless cards in the market, consumers may not be able to start making contactless payments during the pandemic.
Contactless transit payments were expected to be a major driver of overall contactless adoption in the US, but with transit ridership down due to the pandemic, this likely won’t prove as effective. However, US consumers appear to be increasingly interested in contactless payments because of the pandemic, so the payment method may still gain some popularity despite losing transit payments as a driver.
But contactless increasingly dominates at the checkout. In the U.K. and Australia, more than half of all transactions are contactless, as issuers and merchants began adopting NFC contactless payments more than a decade ago. Denmark lagged five or six years behind the rest of Europe in contactless adoption because its popular domestic debit payment system.
Along with the NFC based Cards, Digital wallets are also an ideal way to go digital during the outbreak of Pandemic. Digital wallets use authentication, monitoring and data encryption to secure your personal information. More consumers may also opt for similar “tap and go” transactions through digital wallets like Apple Pay or Google Pay, to avoid handling cash and credit cards during the outbreak of Coronovirus. In India, right from Paytm to PhonePe and Mobikwik, to name a few are being used by the people. The advantage of mobile wallets is that it allows you to go cardless. It does not require any card number, CVV, Pin or mobile number.
In times when the covid-19 outbreak is putting the entire populations under threat, and social distancing has become the norm, it does make sense to avoid transacting in cash.