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Covid-19 spurs contactless payments takeup - Mastercard

As shoppers around the world adjust to social distancing measures, more than three quarters are now using contactless payments, according to a Mastercard study covering 19 countries.

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Covid-19 spurs contactless payments takeup - Mastercard

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Increased concern about hygiene during the Covid-19 pandemic appears to have spurred contactless payments, as people refrain from using cash.

Of 17,000 people from 19 countries interviewed by Mastercard, 46% have swapped out their top-of-wallet card for one that offers contactless - this proportion climbs to 52% among those under 35 years old.

The majority of respondents (82%) view contactless as the cleaner way to pay, while the speed of tap and pay is also seen as a benefit, enabling customers to get in and out of stores faster.

It appears that the trend towards contactless will outlive the virus, with 74% of those quizzed saying they will continue to use the option once the pandemic is over

Blake Rosenthal, head, Mastercard Acceptance Solutions, says: "Social distancing does not just concern people’s interactions with each other; it includes contact with publicly shared devices like point of sale terminals and checkout counters.

"Contactless offers consumers a safer, cleaner way to pay, speed at checkout, and more control over physical proximity at this critical time."

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Comments: (2)

A Finextra member 

Seems like a win, win for the card schemes. The increased use of contactless reduces the need to hold cash and increases dependency on the duopolistic card schemes who are continuing to increase the fees paid by merchants for card acceptance. Consumers need to be aware that nothing comes for free and, given the digital nature of card payments, where is the justification for a charge of 0.5% or more for an electronic transaction? It should be a fixed fee or less than 0.1%.

A Finextra member 

It'll be interesting to see how consumers react when the power goes off and they no longer have access to cash!

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