In September 2014, Apple Pay was introduced by Apple, contactless payment (mobile payment and digital wallet service) integrated within its smartphone hardware and Transport for London's Tube began accepting contactless payment.
In less than 3 years, June 2017, it was reported that purchases made by card surpassed cash for the first time.
UK Finance reported that during 2019, card payments continued to grow to the point of accounting for over half (51%) of all payments in the UK for the first time. Online and contactless payments continued to act as substantial drivers of this growth, with eight out of ten UK adults using contactless payments in 2019.
In summary the number of contactless payments made in the UK during 2019 increased by 16% to 8.6 billion payments while cash payments decreased by 15%.
This was driven by:
- the continued roll-out of contactless cards,
- the continued roll-out of card acceptance devices (such as mobile phones / watches / wearable / digital wallets),
- consumers becoming increasingly comfortable and familiar with making contactless payments
- COVD-19 pandemic
Impact of COVID on contactless payments
We could not conclude this article and not mention COVID-19 pandemic. Even before the pandemic, contactless payments were already a widely used payment method. COVID has accelerated digital payments across the globe. It has emerged as a fool proof way for businesses and enterprises to operate in the new normal post COVID-19.
Once businesses reopened, they had to consider germ-conscious customers and adapt to the new normal of social distancing enforced by governments. Contactless payments have emerged as an essential solution for all the businesses as it enables them to drive their
business forward by considering alternative ways to service their customers, along with ensuring safety to combat the corona virus pandemic. Even the World Health Organisation (WHO) suggested “When possible it would be advisable to use contactless payments to reduce the risk of transmission.”
Increase sales, enhance customer experience along with ensuring safety to combat the corona virus pandemic with contactless payments
Businesses and retailers are considering alternative methods to increase their sales and focus has been on unattended retail. Unattended retail touchpoints populate a diverse set of locations and take various shapes, from vending machines, to automated electronic charging
vehicles and kiosks selling milk at farms or train stations.
The convenience of vending machines is being enhanced by brands with the incorporation of contactless payment systems, including mobile wallets, like Apple Pay and Google Pay. This shift comes as retail and business adapts to meet the demands of consumers’ behavior and spending patterns.
With contactless payments integrated in your vending machines, that were once coin based dominated, meet the shift in ways people are paying. By integrating your vending machines with Kashing’s contactless payment technology, this can be installed when you acquire new machines or retrofit to most pre-existing machines, will directly impact on your sales and enhance your consumer’s experience who want a contactless purchasing experience. It’s a quick and easy solution that will keep customers safe and decrease queuing time.
Contactless vending experiences are driving substantial revenue with retailers reporting that cashless payments have increased revenue by 30%. The way consumers are paying for items is moving closer to a cashless society and vending can now facilitate that change. Payments are quick and an effortless process that can also reduce unnecessary contact.Customer experience is a top priority when it comes to providing improved contactless digital payments and services.
