TRANSPARENT TRANSACTIONS YOU CAN’T TOUCH.

As with all elements in this evergreen society of progression, every evolutionary idea eventually runs its course. Within the financial sector, the 21st generation is spectating as paper currency hits the iceberg and sinks into the depths of the Atlantic. Prior to the devastating impact of a global pandemic, the use of cash had been on a steady decline, with cash transaction rates having declined from 40% in 2009 to 30% in 2019.

COVID’S EFFECT

In plain text, Covid-19 nailed the coffin on the significance of cash. With deadly germs running rampant, countless cash users turned to digital payments in fear of virus transference due to the recycled nature of cash.

Furthermore, the rise of technological advancements is disengaging the general public from traditional notary. As referenced from Barry McCarthy of Forbes Magazine, Visa’s Back to Business study found that 54% of consumers opted for retailers that provided contactless payment as an option. (McCarthy, 2020) At the mention of contactless payments, Apple/Google/Samsung Pay often come to mind. However, payment methods have expanded to the likes of QR codes on pre-pay apps such as Klarna and Afterpay, through which consumers can make purchases with advancements of the exact tender in the form of a temporary credit card, after which the user can pay off the total in increments of 4 weeks (or longer – at the expense of additional interest).

ADAPTATION

As a result of the quarantine mandate taking effect across the world, many became reliant on contactless delivery services such as Instacart, Uber Eats, DoorDash, and newer meal-kit services like Hello Fresh & Blue Apron. Even before the pandemic hit, corporate giants were slowly catching onto the public’s inherent disinterest in interpersonal interactional transactions. In 2007, Amazon launched the Amazon Fresh grocery delivery service, and the pandemic proved to be the determinant of its delayed success in 2020. On January 22nd of 2018, Amazon went a step further in launching its first Amazon Go, a store that incentivizes customers with the added convenience of a grab and go model, by which shoppers access the storefront via QR code, grab the desired products, and go.

Now more than ever, quick-pay options are in high demand. Payment methods are ever changing, and now, we’ve come home to one that our generation can call our own – one that cash or card can’t touch.

Having explored the various contactless payment methods on the market, it is vital that more consumers understand the mechanics behind these seamless transactions. Millions of people joyfully bask in the convenience of using features such as QR codes or Apple/Google/Samsung Pay without understanding the mechanical features that make them possible. Join in for “Part II: What Makes Contactless Untouchable?” in which we explore the mechanical inventions of PAX’s A920/A80, Dejavoo’s Z series, and the newest Clover terminals, that make in-store contactless processing possible.

Read Part II: History and Future of Contactless Payments Here