The COVID-19 pandemic has acted as a catalyst for the adoption of contactless payments. Growth is projected to reach $37.23 billion by 2025, with around 8 out of 10 payment transactions globally currently being made contactless. Of course, contactless payment is just one of the uses of contactless technology. In this article, we cover the subject in detail and shed light on what should be known about contactless technology.
A Brief Introduction to Contactless Technology
Contactless technology is a term used to develop a set of technologies developed to assist the developer. learning from today this technology; met with new applications such as access control, inventory management, data exchange, contactless payments and gateway. contactless technology today; It can be found in different forms such as smart cards, tags and smartphones. Today, almost everyone has at least one card that can make payments with anyone. Contactless or smartphone technology, enabling users to make payments by bringing their card or smartphone close to their terminal. By touching our POS device card, we have made it a close tool for the comfort of giving life. It is a good example of mobile applications that save us from loading instead of plastic cards for public transportation. Teamless smarts, working by communicating with screen readers, are at a high level of range and humans. Those who use this technology for the services they provide are not impersonal cards. Their inclusion in this field as a mobile payment and payment method has increased their dissemination.
Numbers Say It All
Contactless technology; Contactless payment methods are likely to overtake cash in the near future, as they go hand in hand with digitalization trends such as increased speed, security and accessibility. In fact, it is a radical step that some European countries abolish the use of cash in some areas and turn to completely contactless payments. The data shared by research companies on contactless technology tells everything. According to the figures compiled from international payment companies; In 2021, $2.5 billion was paid with contactless cards worldwide. By 2023, the amount of mobile contactless payments is expected to reach $49 billion. In 2020-2021, when the pandemic was experienced, the share of contactless payment transaction values in the total amount increased by 45%, and in 2021, 75% of global domestic money transfer transaction values were made up of contactless payments.
Money Transfer by Clinking Phones
Contactless payment technology is often seen as an easy way to pay in supermarkets, restaurants or cafes. However, when it comes to contactless mobile money technologies, we can talk about much more. Contactless technologies also allow fast transactions between users and terminals (P2P). Thanks to NFC (Near Field Communication) technology, it is possible to transfer money in seconds by touching two devices to each other, thanks to fintek solutions. Using an NFC-enabled smartphone or smart watch instead of a credit card is also becoming more common in this period. Today, this technology is available in many payment points and POS devices. For this, your phone must support NFC technology and you must be a mobile wallet user.
QR Contactless Payments
Another frequently used contactless payment method, QR codes work with the same logic as barcodes in supermarkets. The visual authentication system allows customers to read QR codes on payment terminals so that they can make their transactions quickly and securely. Like contactless payments, QR payments also attract users with their ease of use and speed. And as the numbers show, they are contributing to the relentless rise of mobile payment systems. The number of people using QR payments in the world is expected to increase by 240% between 2020 and 2025. It is also estimated that QR payments will reach 2.2 billion users by 2025 and a total payment transaction value of 2.7 trillion dollars. Istanbul Metropolitan Municipality exhibits a good example of QR payments, which enable more use of contactless payment options outside the store. Istanbul’s transportation card, Istanbulkart, is supported by QR technology, which enables users to make transportation payments with their smart devices without the need for a physical card.
NFC’s Blessings Don’t End With Counting
NFC on mobile devices isn’t just for connecting to payment terminals or making transactions with other NFC-enabled devices. Thanks to the radio frequency-based logic of NFC technology, smartphones; It can transfer data quickly with visual materials such as product packages, publications, posters, tickets and brochures. With this feature, authentication for event or transportation tickets becomes possible. By touching your smartphone to an advertising brochure or package, you can get information about a particular product, such as the production process or expiration date.
Wearable Contactless Payment
Not only smartphones support data transfer technologies such as NFC and QR code. In addition to phones, wearable devices such as NFC-enabled smart watches, wristbands or rings may offer a convenient and personalized option for contactless payments in the near future. As wearable technologies underlined, in the near future, mobile identity verification and payment services will find their place in every moment of life.
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