Fintech Trends: The Future of Contactless Payment Technology

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Author: Derin Cag

Date: November 21, 2021

Link: https://fintechmagazine.com/digital-payments/fintech-trends-future-contactless-payment-technology

In the past decade as financial technology has continued to advance, contactless payments (cellphone payments, wearable technology) have especially been popular and utilized by companies such as Apple and Google. Baillard mentions how contactless payments have been prominent in two primary forms: “contactless-enabled credit and debit cards, and mobile wallets (such as Apple Pay, Google Pay, and Samsung Pay).”

According to Cag, contactless payments have shown countless benefits for individuals and businesses. With the rise of COVID-19 cases, this revolution lines with government’s social distancing measures and health guidelines. Even though the pandemic was only an incident that had happened shortly prior to when this article was written, contactless payment through Apple and Google pay had still been on a rise since two years ago and customers have been becoming more comfortable relying on these digital payments. Individuals have also been able to minimize their pockets with small gadgets they no longer need to be worried about taking out or being stolen.

Businesses also no longer need to worry about purchasing different payment terminals and making time-consuming transactions with fine cash. Former Managing Director at Citibank, Dickson Chu, explains that mobile devices are actually a far more flexible tool when it comes to making purchases with fewer cases of unexpected use-cases and fewer limitations on how the money can be used for.

Analysis

Especially with COVID-19 happening so recently and contactless practices becoming more incentivized, this direction is sure to continue to be relevant. And although this system is not perfect as many locations still don’t offer Apple/Google pay, these payments continue to extend to different devices other than mobiles such as watches and QR code payments. In New York, customers are able to scan their credit card directly through the subway gates instead of purchasing a ticket beforehand. This revolution is definitely not new to America either. In China, almost any contactless transaction is done through Alipay which users input all secure information on a public app called Wechat. In Japan where getting on a subway is a daily task for many people, they will carry around a Suika card which can also be used to get around on almost any train and bus, and even purchase things from vending machines (which can be found on every other block).