PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Are Contactless Cards a Stepping Stone to Mobile Payments or an Avoidable Expense?

By Sarah Grotta
January 29, 2019
in Analysts Coverage, Contactless, Credit, Debit, Mobile Payments
0
15
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
contactless payment digital wallet

Customer making contactless payment through smartphone

Beginning three years ago the payments industry in the U.S. was full of hope around the prospects of replacing traditional payment form factors with mobile devices for a more secure transaction and a consumer experience that the industry was really convinced consumers would appreciate. Bucking global trends, it hasn’t been met with the enthusiasm anticipated with mobile payment adoption still today somewhat lackluster.  Now the conversation has turned towards the issuance of contactless cards as something of the training wheels version of mobile payments to get consumers use to tapping for payments.  An opinion piece in PaymentsSource urges issuers to reconsider this intermediate and potentially expensive step:

Smartphone owners are warming to mobile payments, with half of them using the method in the last year. A Mercator study also found 70 percent of U.S. consumers would use mobile payments more often if they automatically received rewards or discounts, whether for every purchase or accrued over time. 

This is a huge opportunity for financial institutions that would otherwise need to invest in making their cards contactless. With POS terminals able to handle contactless requests from NFC-capable smartphones, instead of investing in contactless cards, financial institutions should focus on moving their offerings to mobile and into apps that can do more than simple money management.

It’s along these lines that in 2019, we’ll see many traditional banks leapfrog using mobile technology. Card issuers cannot afford to leave changing customer payment preferences unaddressed — banks face a choice between introducing touch-and-go or being seen as completely out of touch. 

All players across the payments industry face pressure to innovate and make the payments experience faster, easier and more rewarding. Overcoming the limitations of their legacy systems is a major stumbling block for banks trying to catch up with the digitization that is causing disruption across the payments and banking industry.

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group

15
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: ContactlessMobile Payment

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Banking-as-a-service BaaS

    Remodeling Main Street: How Community Banks Can Leverage the Banking-as-a-Service Paradigm

    June 12, 2025
    How Employee Performance Enhances the Customer Experience

    Three Strategies to Maximize Loyalty in the AI-Driven World 

    June 11, 2025
    PFM tools

    How FIs Are Cutting Through Subscription Clutter with PFM Tools

    June 10, 2025
    child identity theft

    Stranger Danger: Protecting Your Children from Identity Theft

    June 9, 2025
    agentic commerce

    The Agentic Advent: How the Next Iteration of AI is Shaping Commerce

    June 6, 2025
    payments hub, digital banking

    All in One: How a Payments Hub Eliminates the Pain Points

    June 5, 2025
    Vertical SaaS

    From Underdogs to Industry Leaders: How Vertical SaaS Powers Mid-Sized Firms

    June 4, 2025
    credit card surcharging

    A Perfectly Understandable Bad Idea: Why Merchants Should Reconsider Surcharging

    June 3, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result