It’s Beginning To Look A Lot Like Contactless Payments


Dec 19, 2020



Dec 19, 2020



As consumers gear up for the holiday shopping season, many are looking for a contactless experience from retailers. Representing a scant 3% of US transactions in 2018 (versus 64% in the UK and 96% in South Korea), tap-to-pay is up 150% in the US since March.

Last spring, contactless payment limits (intended to reduce fraud), which initially started at $30, increased across the board, doubling in Germany and Netherlands, and jumping up to $250 in the US. Consumers are driving a lot of this change. According to Visa, 50% of consumers “would not shop” at stores that don’t have touchless checkout.

With over 383m users, Apple Pay has been a driving force for alternative payments (outside of China), and has recently drawn antitrust attention from several regulators. Since Apple is able to block rivals from using tap-and-go payments on an iphone/iwatch, regulators are concerned Apple is only giving consumers its technology as the option for contactless payments. Claiming that their approach is about security, Apple has attracted the European Commission’s attention, as the latter has launched a formal antitrust probe into Apple Pay.

Maybe some smooth talking with the regulators will help cement Apple’s position as the driving force in contactless payments for many Christmases to come!

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It’s Beginning To Look A Lot Like...

Contactless is no passing fad. It’s the future of payments - Contactless payments (e.g., Apple Pay, Google Pay, tap-to-pay cards, etc.) are no longer a novelty. And adoption will only continue to accelerate: While the recent popularity of contactless payments was born out of necessity partly due to consumers’ safety concerns, the convenience and speed they offer has ensured that contactless will become a ubiquitous payment option across industries and payment experiences going forward. Read more

Apple Pay draws antitrust attention - Apple’s next antitrust battle is shaping up to be over Apple Pay, the company’s digital wallet, as the Covid-19 pandemic turbocharges use of contactless payments. Apple Pay is growing fast as consumers try not to touch buttons or handle cash because of the coronavirus. Read more

Hands-off holiday shopping blitz puts ‘contactless’ in spotlight - For most consumers in the U.S., using a credit card and interacting with a PIN pad to make payments was rarely an issue — until the Covid-19 outbreak. With hygiene suddenly becoming the top concern, consumers have been getting a fresh look at contactless payments. Read more

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Select Financings

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