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Data for today’s episode is provided by Mercator Advisory Group’s Blog – Contactless POS Payments Finally Ready For Prime Time
Growth Opportunities for Contactless Payments:
- Payment providers, including card networks, issuers, and independent software vendors, can take advantage of several contactless growth opportunities in various vertical markets.
- Restaurant (1 of 2): Pay-at-the-table will become a more frequent contactless payment option as in-house dining returns to restaurants post COVID-19.
- Restaurant (2 of 2):Restaurant operators find increased staff productivity and fewer ordering errors, while diners enjoy faster ordering and payment without handing their payment card to the server.
- Grocery: Mobile scan-and-pay apps are popular with shoppers who do not want to wait in checkout lines.
- Transit: Contactless payment cards are replacing closed-loop prepaid cards for fares. Transit agencies will convert to contactless credit or debit cards, and riders will not have to reload prepaid cards.
- Fuel: Mobile pay apps are increasingly used at fuel retailers by drivers to pay for gas. Conversational commerce will also arrive at the pump.
Several years in the making, contactless payment cards are finally arriving in large numbers at mailboxes throughout the U.S., as domestic cardholders catch up with the rest of the world. But contactless goes beyond plastic cards, with mobile apps providing another payment option for consumers to choose. While COVID-19 has accelerated contactless in 2020, payment providers and merchants now see that no-contact POS transactions can be a differentiating strategy to engage and expand their customer base beyond the pandemic.