Skynova have recently released a study that looks into how consumers and businesses are embracing contactless payments during COVID-19. The global COVID-19 pandemic has accelerated what was already starting to happen in the digital technologies space, particularly within the financial sector, with contactless payments encouraged to help reduce the spread of the virus.
The study, ‘Switching to Contactless Payments: An In-Depth Look at the Rise of Contactless Payments in America’ surveyed over 1000 people (including both consumers and small business owners) for the preferences on tapping to pay rather than sliding, swiping or inserting.
Since the pandemic began, the number of respondents always using contactless payment has nearly doubled. Before COVID-19, Skynova found that 34% of consumers often used contactless payments when checking out, and 16% always used the technology. In contrast, 41% of consumers reported often using contactless payments during the pandemic, and 32% said they always use contactless payments. The fear of COVID-19 (67%) was the biggest reason for the shift to contactless payments, followed by convenience (57%) and that some stores are requiring it (47%).
For some consumers, the newness of contactless payments still leaves them with some doubts. 63% of respondents indicated contactless payments made making purchases too easy, while 47% said it made their credit card information less secure, and 42% said it made them worry about their personal finances. In reality, contactless payment can actually be more secure than conventional payment methods because the technology does not transmit your name, full credit card number, or the security code of your card.
Digital banking was already on the rise, but the COVID-19 pandemic has pushed both consumers and business owners to adapt to these new technologies even faster. As the popularity of contactless payments continues to rise, some analysts are wondering if we even need cash to operate at all.
Among the more than 1,000 people polled, 60% indicated their support for becoming a cashless society, while roughly 21% were unsure. Less than 1 in 5 respondents opposed the idea of forgoing cash completely. 13% of people also acknowledged they stopped carrying cash on them since the pandemic began.
To find out more or read the report in full, click here.