There are two factors that impact payment technology adoption: Whether users can use it and whether merchants can accept it. Tap to phone payments make both easier.
Why the Stage is Set for Tap to Phone
Consumers have embraced contactless EMV payments. Visa found in a 2020 survey found contactless transactions increased by 150 percent over the previous year.
Americans often consider themselves trendsetters, but it doesn’t quite ring true when it comes to mobile wallet payments. In fact, China takes the top spot, with roughly 40 percent of its population of 1.4-billion using mobile wallets as a way of paying, compared to about 26 percent in the U.S, which also trails Vietnam, South Korea, the U.K. and India.
Back in 2019, the MTA rolled out OMNY – an innovative contactless fare payment system that allowed riders to simply “tap n go.” A rider (whether a daily traveler or a tourist) could simply use their contactless card, mobile wallet or wearable to tap directly on the turnstile to gain access to the platform and the train. This was an innovative and easier way for riders to pay for their journey. As public transit returns to normalcy since the pandemic began in 2020, in July 2021, MTA logged their 100 millionth tap on these systems. This is significant for multiple reasons. First, the MTA manages one of the busiest subway systems in the US and this milestone represents a good rate of adoption for this new process. Second, it also represents how comfortable riders have become with using contactless payments.
2020 changed a lot of things for everyone – most companies adapted to work from home models while schools and universities adapted to remote learning. When it came to payment technology – contactless usage skyrocketed around the globe – even in countries where the technology had been popular for years. The COVID-19 pandemic catalyzed the adoption in many countries as “touchless” experiences became imperative to the safety and security of consumers across all industries. Businesses across the globe dramatically increased investment in touchless experiences for their customers - from retail payments to subway transit passes, to even check-in at hotels.
Even before the sweeping effects of COVID-19, contactless payments comprised a heavy percentage of modern retail purchases. As once shuttered businesses begin to reopen and adapt to more germ-conscious customers, contactless payments have emerged as an essential solution to have in place.
