COVID-19 has affected the Global Contactless Payment Market

The contactless payments are exploding in popularity all across the globe owing to growing acceptance of consumers and easy-to-use feature. A near field communication (NFC) technology is utilized by contactless payments to allow communication between two electronic devices. In NFC data can be transmitted over radio as it is a short-range wireless communication system. With NFC technology the data is transmitted only if the two devices are in a close range to each other. Contactless payment is an easy and convenient alternative of cash payment in which the customer can make payments using chip cards such as credit, debit, or smartcard.

There are two main types of contactless payments:

  • Contactless Cards

These cards are debit or credit cards that allows transmission of payment data because of an antenna embedded in the card.

  • Mobile Wallets

Mobile wallets are apps, like Apple Pay or Google Pay, in which consumers can store their card information. During checkout, the consumer opens the app and by just tapping the mobile device on the card reader completes the payment.

To Reveal the Market Overview, Opportunity, Expansion and Growth of Contactless Payment Market. Click here to know more in details @

The Benefits of Contactless Payments

Contactless payment brings customers and merchants alike a number of benefits:

  • Faster Checkout Process

Contactless payment is simply tapped on the card reader, and there is no need for the cardholder to enter a PIN.

  • Enhanced Security

An EMV card chip technology is utilized by contactless payments utilize, which is considered to be more secure as compared to the magnetic stripe transactions. As per Research Dive analyst review, contactless payments do not transmit the cardholder’s security code or name, which makes it tougher for fraudsters to make unlicensed purchases by interrupting contactless card data.

However, it should be noted that the mobile wallets offer an added layer of security in which the cardholder on their device has to enter the password to open their mobile wallet.

  • Capable of Connecting to Customer Loyalty Programs

Mobile wallets can be easily linked to loyalty programs and rewards, which is increasingly preferred by the consumer.  As per a recent survey, it is revealed that about 63% of the consumers prefer to use payment methods that offer rewards.

Contactless V/s Cashless Payment

Mostly people take contactless and cashless payment as interchangeable terms. But there is lot of difference between contactless payment and cashless payment.

Contactless payments are those where credit cards or debit cards that either use RFID or NFC technology. In contactless payment, no signature or PIN for card is required to complete the payment. Thus, contactless payment is also called as “simply tap and go”. One needs not to do inserting or swiping the card in any ATM or POS machine. Just tap the card on the card reader and the payment is complete.

A cashless method can be defined as any type of payment that is made without using cash. The examples are bank transfers, credit card payments, debit card payments, digital wallets, and mobile payments. In order to complete the payment or transaction, the consumer doesn’t need to have any cash.

Check out How COVID-19 impact on the Contactless Payment Market. Click here to Speak with Analyst @ 

Cashless to Contactless Payment amid COVID-19 Spread

This is a very crucial time as the entire world is suffering from COVID-19 pandemic. In this pandemic situation cash is no longer a king. As per World Health Organization (WHO), the novel corona virus can spread through credit card, debit card, and cash payments. WHO has suggested to continue with contactless payments and avoid using cash for a certain period. As per a scientific published paper, it is found that the corona virus can live on cardboard for nearly 24 hours and up to three days on stainless steel and plastic. Banknote avoidance is happening in South Korea, Iran, Japan, and the U.S. Although, Germany is considered as the cash loving economy, it has also switched to cashless and contactless payment.

About Us:
Research Dive is a market research firm based in Pune, India. Maintaining the integrity and authenticity of the services, the firm provides the services that are solely based on its exclusive data model, compelled by the 360-degree research methodology, which guarantees comprehensive and accurate analysis. With unprecedented access to several paid data resources, team of expert researchers, and strict work ethic, the firm offers insights that are extremely precise and reliable. Scrutinizing relevant news releases, government publications, decades of trade data, and technical & white papers, Research dive deliver the required services to its clients well within the required timeframe. Its expertise is focused on examining niche markets, targeting its major driving factors, and spotting threatening hindrances. Complementarily, it also has a seamless collaboration with the major industry aficionado that further offers its research an edge.

Contact us:
Mr. Abhishek Paliwal
Research Dive
30 Wall St. 8th Floor, New York
NY 10005 (P)
+ 91 (788) 802-9103 (India)
+1 (917) 444-1262 (US)
Toll Free: +1-888-961-4454
E-mail: [email protected]
Follow us: