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

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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. 

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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