The future looks bright and frictionless for contactless payments. After years of steady growth, touchless commerce accelerated during the pandemic. Increased usage of new payment technology, such as mobile, wearable devices, and biometric payment authentication, prompted Visa and Mastercard to raise spending limits on tap-and-go transactions.
Achieving widespread U.S. adoption of contactless payments will require strong interest from both consumers and merchants, technology enablement, and a trigger that sparks lasting change in the way people pay. Increased issuance of contactless credit cards, the proliferation of contactless-enabled devices, and mobile and eWallets will further support the transition from cash to alternative payment methods.
Digital Wallets and Mobile Payments
Safety concerns heightened the adoption of digital wallets and mobile payment technology during the pandemic. The speed, convenience, and security of these solutions will ensure their longevity. In addition to being more secure than paper checks and cash, digital wallets and mobile payments are settled faster and offer more predictable cash flow.
Another benefit of alternative payments and mobile payment apps is their direct communication with clients and consumers. Venmo, Zelle, and other peer-to-peer (P2P) payment schemes are on the rise. Same-day ACH and real-time payments (RTP) are also gaining traction, creating new opportunities in B2B payments.
Near-Field Communication (NFC) and RFID Technology Payments
Apple Pay, Google Pay, and contactless form factors, such as smartphones, smartwatches, and other wearables, are powered by Near-Field Communication (NFC) and RFID. These technologies drive fast, easy transactions that can be tracked and monitored, enhancing security and reducing the risk of fraud.
NFC and RFID technologies drive efficiencies in banking and B2B transactions by limiting physical contact during transactions and protecting sensitive data with added security and fraud prevention layers. Devices must be nearby to transmit information, making it less likely to be intercepted. EMV-enabled contactless transactions improve security and reduce liability for EMV-compliant merchants and payment processors.
Biometric Payment Authentication
In today’s digital environment, biometric technology offers a smart alternative to manually entering passwords and credit card data. Biometric solutions quickly authenticate users based on uniquely personal traits that are nearly impossible to replicate, such as fingerprints, faces, palms, retinas, and voice.
Biometric applications provide secure, seamless, and instant authentication and integrate with POS devices, mobile apps, and website portals. Biometric solutions are gaining popularity in numerous sectors, including online gambling and online banking. These solutions authenticate transactions sent by mobile devices and eWallets.
Enhance Your Processing Power
Amidst the growing demand for safe, secure, contactless payment methods, payment technology providers help merchants upgrade processing systems to enable touchless commerce. In many cases, merchants who accept EMV chip cards find it surprisingly easy to accept contactless cards and digital wallets.
Merchants appreciate the speed, security, convenience, ease of use, and hygienic aspects of contactless payments. These myriad benefits are driving contactless adoption across multiple sectors of B2B commerce.
If your business is not currently accepting contactless payments, contact your payments technology provider to explore available options for enhancing your payment processing.
OmniFund has more than 20 years of experience and expertise in helping large and small businesses solve complex problems with secure, simple, and scalable processing solutions. Whether you need a system upgrade or consultative services, a partnership with OmniFund is more than payment technology.
Find out how you can meet today’s challenges and be ready for tomorrow with OmniFund’s Payments as a Platform® and personalized support. Discover the OmniFund difference today.