Demonstrate your leadership with contactless payments

Next-generation contactless payments represent a large growth opportunity for small banks and credit unions. You can gain competitive differentiation in the market by issuing and promoting this simple, quick, convenient and secure way to pay

The growth of contactless technology­­—including contactless cards, mobile wallets and wearables—will further allow cardholders to pay quickly, seamlessly and securely, whatever form factor they may choose. It can benefit community issuers by: offering a seamless consumer experience; providing a way to be innovative and competitive; and creating opportunities to displace cash. Preference for contactless payments is illustrated by the significant contactless penetration around the world. To highlight a few mature contactless markets: 92% of Australia’s face-to-face (F2F) transactions are contactless, 74% in Poland, 50% in the UK, and 48% in Canada.1

In the US, consumers have vocalized they expect an improved payment experience at POS relative to today’s EMV experience. By migrating your portfolios to support all contactless payment types, this introduces a more seamless, frictionless experience for them. 

Contactless card benefits for you and your cardholders: 

  • Contactless cards leverage the same security as EMV chip cards where a one-time use code is triggered with each transaction
  • Contactless cards take about a second, which introduces a fast, enhanced payment experience for consumers
  • Creates interoperability around the world where your cardholders can “tap to pay” around the world and within the U.S.
  • Provides cardholders with the option to choose any form factor and have an improved customer experience when choosing plastic
  • It is so easy; cardholders can tap their contactless cards in situations where cash previously would have been used 

Beyond the enhanced consumer experience, there is also a strong business case for community issuers to offer contactless. Contactless cards have proven effective in converting cash to card-based payments. There is still a large amount of cash in the U.S. to convert to electronic payments. Beyond the enhanced consumer experience, there is also a strong business case for community issuers to offer contactless, as one-third of transactions and one-fifth of spend is cash, representing a $2T opportunity.2

 

Sources:

1 Penetration across regions, from VisaNet December 2017

2 Nilson Report / Euromonitor Data, Q1 17