Whitepaper India taps into a Contactless future

30 / 06 / 2022

Contactless payments: the future is here. NFC technology empowers effortless transactions using credit cards, smartphones, and mobile wallet apps.

Contactless Report

Contactless payments are cashless transactions that do not require cards to be swiped or dipped at Point-of-Sale (POS) terminals. Several instruments – such as credit and debit cards, key-fobs, smartphones, and certain mobile devices – can initiate contactless transactions by using Near-Field Communication (NFC) technology, allowing contactless debit or credit credentials to communicate with NFC-enabled terminals at close range (usually 4 cm or less).

NFC also powers mobile wallet apps such as Apple Pay®, Samsung Pay®, and Google Pay™ on NFC-enabled Apple and Android smartphones today. EMV chip card adoption has been pivotal for the growth of contactless payments in many developed and developing economies. Offering a cohesive experience of convenience, speed and enhanced security features to consumers, merchants and payment processors in face-to-face transactions, contactless payments are poised to grow faster than any other form(s) of payment technology.

The pandemic has left us with a renewed focus on contact hygiene, which has sparked further growth in contactless payments worldwide. A survey by Visa – The Back to Business Study (June 2021), 2,250 small businesses and 5,000 adult consumers in 9 countries showed that 60% of consumers “expect to use contactless wherever possible”, and 67% expect “brick-and-mortar retail stores to accept contactless” going forward. Coupled with the growth in digital literacy, smartphone adoption and fintech innovation, contactless payments are likely to be the default payment method in the foreseeable future.