The coronavirus pandemic has rather caused an evolution and new discoveries in the digital payments revolution. The manner in which we store, access and spend our money has constantly changed over the past years. However, the coronavirus pandemic has caused a major shift in the evolution of card technology. Contactless payment which is also referred to as tap and go has been a game during and after the era of an unprecedented pandemic that rocked the world.
Contactless payment refers to a secure method for consumers to purchase products or services using a debit, credit, smartcard, or another payment device by using radio frequency identification (RFID) technology and near-field communication (NFC). Contactless payments operate either through cards or through mobile apps and digital wallets. These payments typically use either RFID or NFC to communicate with readers and can only do so at a distance of roughly two to four inches, helping to ensure payment is always intentional.
The first ever widespread use of contactless payment was recorded in South Korea in 1995, where the Seoul Bus Transportation Association issued a UPass card for passengers. It allowed making contactless payments for trips. Retailers and finance industry experts have been keen to harness the power of contactless cards and mobile-based payments during the pandemic because they see doing so as an important factor in improving the speed and convenience of purchasing goods. And these drivers will continue to remain crucial to driving footfall and improving the customer experience in the long term.
The payments sector has continued to build on the developments in secure smart card (EMV) standards. Indeed, smart card technology has proven to be the access point for a range of technology offerings, such as mobile wallets and big tech card programs. The rise of fintechs and big techs is further driving many developments in the sector, turning innovative technological ideas into customer-friendly ways of paying.
Just as retailers have had to respond to changes in demand on the high street by reinforcing their online presence, so too have banks, which have faced the additional challenge of new, lean market entrants that can adapt quickly to change and innovations. The COVID-19 crisis has brought into focus the importance of technology in our daily lives and has led to even more people from every age cohort turning to new ways of shopping and paying, whether it be online via credit cards, EMV, or contactless mobile payments.
The rise and evolution of contactless payment technology is undeniable and we are in an era where we continue to witness unparalleled innovations with contactless payments. Now, we have entered a new era where direct card to reader contact isn’t necessary nor even is the card in our wallet. The rising popularity of contactless payment has resulted in rapid evolution and implementation worldwide. In Europe, contactless payment has nearly become standard, with the majority of new cards featuring the service. In Europe, contactless payment has nearly become standard, with the majority of new cards featuring the service. In Africa, adaptation has been slower, but its prevalence continues to grow. Environment and security issues have been a major factor to why adaptation has been very low in Nigeria. Two of my debit cards issued here in Nigeria are contactless, I have used them successfully outside the shores of the country, unfortunately, I am still not able to use them in Nigeria as retailers still don’t use terminals that accept a contactless payment method.
Contactless payment is an evolving technology and its potential uses are still being discovered. Who says it can’t go beyond the level of phones and cards to the level of using watches, rings and even facial recognition for payments. For example, the first biometric payment cards are now available—credit and debit cards featuring a fingerprint scanner to combine the comfort of a card with the security of mobile apps. As financial management moves more and more into digital spaces the technology will only grow in.
By -Banji Oyetunji, Digital Payments Consultant
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