Tue, 28-Jun-2022
Thursday 18 Jun 2020 , 11:21 am

With Contactless Payment Option, are we Entering the Future, or Going Back in Time?

Continuous growth in technological advancements, rising use of apps in smartphones, tablets etc. and user's preference for contactless payments or money transfer are some of the main factors that are bolstering the contactless payment market.
Share at:

As the world is facing the unique crisis that is COVID-19, social distancing and physical contact are proved better practices to prevent the spread of the virus. Transportation and travel infrastructure are the sectors where people from different regions interact. Considering the scenario of pandemic, it is witnessed that leaders from many cities are encouraging their residents to use the contactless payment apps versus the meter to pay tolls or parking charges.

In June ParkMobile has announced partnerships with various cities’ Authorities including City of Oxford, Little Rock, City of La Crosse, and Three Pennsylvania Parking Authorities—Allentown, Reading, and Bethlehem—to provide the smart parking and mobility solutions.

"We're committed to supporting the efficient and safe movement of daily traffic in our city, and ParkMobile enhances that mission by providing customers with contactless payments," comments Little Rock Public Works Director Jon Honeywell.

It has also been observed that many private companies are focusing on organic strategies like product launches, approvals and others such as patents & events for the growth. While some are performing inorganic strategic activities including mergers and acquisitions and partnerships & collaborations for the business expansion.

For instance, Airfield Supply Company—a vertically-integrated cannabis dispensary—announced recently that it has partnered with cannabis POS platform to add Treez Pay to its roster of payment solutions. Using smartphones, its customers are now able to pre-pay for pickup and delivery of cannabis purchases that is planned to decrease the wait times as well as to prevent the spread of germs.

"With Treez Pay, encrypted and confidential customer banking details are not accessible by the dispensary or by Treez Pay as the system directly links to the customer's personal bank account. This protects transactions from malicious attacks and is much safer than peer-to-peer options like Venmo or other peer-to-business options," says Airfield Supply Co. founder and CEO Marc Matulic.

To this,  Treez CEO John Yang in the statement of an announcement added, “Traditional payment options like cash, debit, and ATMs tend to slow down transaction times, while also hindering the ability to social distance at a high-volume dispensary like Airfield, which sees up to 1500 customers per day.”

As per the research report published by The Insight Partners, the reasons that are bolstering the contactless payment market are:

  • Growing use of contactless payment technology in smartphones, tablets, and mobile handsets
  • Users’ increasing preference for contactless payment due to less transaction time and its user-friendly processing
  • Continuous technological advancement

Contactless payment service provider companies such as Advanced Card Systems Ltd., Gemalto N.V., Giesecke+Devrient, Heartland Payment Systems, Inc., Ingenico Group are already active in the market.

Even if the COVID-19 pandemic has given a push to the growth of the contactless payment market, but analysts state that high cost for initial installation, government’s limitation on amount as well as number of daily transactions may hamper the growth of the market. Plus, some people still don’t trust this payment option considering the risk of malware, spyware, and virus attacks and these reasons are limiting the adoption of contactless payment solutions globally. Low spread of awareness of this payment options, specifically in the regions of Asia Pacific and Latin Americas is too restricting the market expansion.

Neha Mule

Neha writes articles on sectors including medicine, food, materials, and science & technology. A qualified statistician, she has the ability to observe and analyze the trends in global markets and write compelling articles that help CXOs in decision making. She is a bookworm and loves to read fiction, lifestyle, science and technology. Neha comes with 6 years of experience in content writing and editing that involves blog writing, preparation of study materials and OERs.

More from Neha Mule

Related News