The Future of Contactless Payments and What It Means for Your Business

Mobile wallets. Tap-to-pay cards. Today’s consumers have many options for paying for goods and services without using cash or payment terminals. While contactless payment technology has been around for some time, the pandemic accelerated its adoption. What innovations are on the way? Let's take a look at contactless payments and what they could mean for your business.

Move over cash—contactless payments are here to stay

Contactless payment systems are powered by near field communication, or NFC, technology and use a type of radio-frequency identification to enable a credit card, debit card, smartphone, key fob or other devices to communicate with a payment reader.

Driven by health-conscious consumers, acceptance of this fast, frictionless payment form has grown exponentially. It's streamlining transaction processes everywhere from fast-food restaurants to pharmacies. Some of the most popular contactless payment systems include:

• Tap and go: Consumers pay by tapping or waving their cards over a point-of-sale system.
• Mobile wallets: Accessed through applications or wearable devices, mobile wallets enable payments by scanning a QR code or tapping the phone. Apple Pay®, Android Pay™, Samsung Pay™, Google Pay™ and mobile banking apps are examples of mobile wallets.

Developments in contactless payment technology

Contactless payment technology continues to evolve to meet consumer demand and address security concerns. Here are some of the trends.

• Biometric authentication: This security method is based on a person’s biological characteristics. Biometric authentication alleviates the need for PIN codes and passwords. Facial recognition, iris recognition and fingerprint scanners are ways biometric authentication is used by businesses to help protect their customers.

• In-vehicle payments: Buckle up. Your customers may be ready to make payments from their cars. Auto manufacturers are collaborating with credit card companies to develop in-vehicle payment platforms that enable drivers to make card payments without being connected to a mobile phone or another device—the vehicle itself is equipped with the technology to process transactions.

  Used right now for fuel, food and parking, in-vehicle payment technology can drive convenience for your customers by giving them another way to pay and accelerating transactions. Consider the ways you could partner with auto manufacturers to use in-vehicle payments to your advantage.

Your business is focused on growth and security. Look to new technologies in treasury and payment solutions and merchant services to help you improve your financial operations, generate efficiencies and increase profitability.