Diving into the Latest Trends in Contactless Payments Empowering Businesses with Greater Possibilities

Over the past several years, customers’ payment options have changed significantly, especially amidst the COVID-19 pandemic. With the spontaneous digital revolution, individuals are urged to make contactless payments. It is a secure wireless payment method through which customers can buy goods or services by using a credit, debit, or smart card. The technology behind enabling such payments are radio frequency identification (RFID) and near-field communication (NFC). This article includes the latest trends reshaping the contactless payments market, such as innovative product launches and the involvement of leading key players.  

Advancements in contactless payments: 

The main purpose of adopting contactless payments is convenience. Mobile wallets are one of the most popular trends in contactless payments that enable consumers to complete their purchases by using their smartphones. These are payment alternatives that can allow consumers to make both in-person and online transactions more safely. Such cutting-edge payment methods can foster the market’s growth with huge investment opportunities.  

Furthermore, individuals are more prone to smartphones in their daily lives to make payments which has paved the way for peer-to-peer (P2P) payments. These payment options allow individuals to send and receive cash through mobile devices linked with a bank account or credit card. According to eMarketer, the P2P industry will generate over $1 trillion in transaction volume, accelerating the contactless payments market’s growth.  

On the contrary, the rise of e-commerce has expanded consumer behavior for making online payments. Nowadays, many e-commerce companies have come forward with digital transformation initiatives to replace paper-based accounts receivable processes with online payments by integrating properly with fintech software. In addition, embedded finance technology has also gained huge popularity in contactless payments by allowing clients to buy and obtain credit in one place rather than visiting a bank physically.  

As wearable devices have become a new trend among individuals, making payments through these devices has come out as a preferable, secure, and safer mode of making financial transactions. This robust factor has fueled the growth of the contactless payments market. In addition, the increasing trend of accepting NFC-enabled cards among merchants may further boost the market’s growth in the coming years. The market is predicted to grow at a striking CAGR of 18.3% from 2023 to 2032. 

Product launches: 

In response to the growing demand for in-store payment options among merchants globally with audio-based confirmations for receiving amounts, many leading market players have introduced top-notch payment solutions. A suitable example is the launch of the Paytm Card Soundbox, by Paytm, an Indian multinational financial technology company. This device will allow merchants to receive both mobile and card payments, such as Mastercard, Visa, RuPay, and many others, and scale their businesses with a “tap and pay” solution. 

Mergers and acquisitions: 

The contactless payments market has also undergone a series of mergers and acquisitions between leading companies to foster competitive insights. For example, Worldline, a leading Europe-based payment service provider announced its acquisition of SoftPos, a renowned provider of a cost-effective card acceptance solution. With this acquisition, the companies aimed to implement software point-of-sale technology that would allow merchants to accept contactless payments. 

To sum up, the contactless payments market is experiencing remarkable growth owing to the faster integration of IoT (Internet of Things) in contactless payment technology. Additionally, the ongoing digital transformation across businesses globally may bolster the market’s growth with excellent opportunities.

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