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๐Ÿ’ณ Payment Tech โ€ข June 2020

Contactless Payments Double: Health Concerns Drive Adoption

Fear of cash transmission drives tap-to-pay from 15% to 30% of all transactions

15% โ†’ 30%
Contactless Share
2x
Growth in 3 Months
73%
Prefer Contactless
๐Ÿงผ The Hygiene-Driven Shift

Before COVID, contactless payments were growing steadily at about 5% per year. The pandemic compressed five years of growth into three months. Consumer surveys showed that 73% of shoppers preferred contactless payment methods due to hygiene concerns.

๐Ÿ“ˆ Payment Method Trends
Payment MethodPre-COVID (2019)Mid-COVID (2020)Change
Contactless tap15%30%+100%
Mobile wallets8%18%+125%
Cash26%15%-42%
Chip insert45%33%-27%
Swipe6%4%-33%
โœ… POS Requirements
๐Ÿ’ก To accept contactless payments, your POS terminal needs an NFC reader. All modern Square, Toast, Clover, and Shopify terminals include NFC. If your terminal is pre-2018, it likely needs upgrading.

๐Ÿ‘ Pros

โœ… Faster checkout (2-3 seconds vs 8-10 for chip)
โœ… Reduced hygiene concerns
โœ… Lower fraud rates than swipe
โœ… Customers prefer it (73% in surveys)

๐Ÿ‘Ž Cons

โŒ Requires NFC-enabled terminal
โŒ Some older customers unfamiliar
โŒ Small transactions may not require PIN (security concern)

๐Ÿ”‘ Key Takeaway: The contactless shift is permanent. Even as hygiene concerns faded, consumer preference for tap-to-pay stuck. By 2023, contactless exceeded 60% of all in-store transactions.


POSadvice.com โ€” Independent Reviews

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