Visa Says Contactless Cashless Payments Are The Next Big Thing For Small Ticket Transactions

Sept. 26, 2018

After rapid success in the U.K. and Canada, Visa is claiming growth of contactless payments is coming to the U.S., reports  Visa Vice President, Consumer Products and Head of Global Contactless Payments Daniel Sanford is quoted as saying that the U.S. will begin seeing the same adoption trends as the rest of the world (some areas reaching over 50 percent use in 18 to 24 months). Part of the reason is the previous push for EMV or Europay, Mastercard and Visa cards for physical card transactions and mobile wallets for contactless. Mobile adoption is in what Sanford called a "nascent phase" where it's beginning to show signs of future potential, but not growing rapidly. However, contactless cards are gaining traction globally, especially for small ticket transactions, cites Sanford. In the article, PYMNTS gives the example that consumers standing in a convenience store line do not have confidence the mobile device will always be accepted. They then have to stop and find their physical card. However, if the contactless feature of a physical card doesn't work, it is already in head and can be swiped. This eliminates a barrier Sanford believes exists to mobile contactless usage.  

Sanford is reported as saying worldwide contactless payments tend to be centered around small-dollar, habitual purchases where fast checkout and convenience matter most, making it an important consideration for vending and micro markets operators in the convenience services industry. When upgrading equipment, it will be important to consider contactless payment acceptance.