The number of contactless payments is set to soar over the next few years. Embracing it now will make buying easier for your customers — and bring greater rewards for your business.
In 2014 UK shoppers made 319 million contactless transactions worth £2.3 billion — up 331% on 20131. And that’s just the start. As the contact limit increases – from £20 to £30 in September 2015 – and with shoppers looking for new ways to make buying quicker and easier, contactless purchases are expected to grow by another 36% by 20192.
At Barclaycard we’ve led the way, launching our innovative bPay band in 2014, allowing for quick and easy contactless payment, and expanding our range in June 2015 to include fobs and stickers. Other systems are coming to market to meet demand for new payment methods, such as Apple Pay, which has already launched in the UK, and Samsung Pay set to follow suit later in 20153.
By embracing new technologies, your business can reap the rewards and define the sector.
The need for speed across channels
Convenience has never been more important: shoppers are increasingly looking for quicker and more flexible ways to pay that fit their lifestyle.
At the same time, shoppers need to feel secure and comfortable enough to try a new way of paying. Once they’ve tried it, they need reasons to keep using it.
And what better reasons than speed and ease of use — with security and plenty of flexibility thrown in for good measure?
The shape of things to come
The increased use of contactless payments in the UK shows that customers are happy to adopt new technology — and there are plenty more high-tech devices on the horizon that could make things even quicker and easier, including:
- Facial recognition software — where shoppers pay by scanning their face with a smartphone.
- Global fingerprint sensors — expected to rise 17.1% over the next five years and be worth £9.3 billion by 20204.
- Wearable devices — contactless technology like wristbands or gloves, such as bPay.
The path to success
Many retail success stories can be traced back to one factor — bringing more convenience into shoppers’ lives.
To do that, you need to strike the balance between the customer’s appetite for convenience and their confidence in innovation.
Above all, success is about making their day a little bit more straightforward and stress-free — so they can focus on what they’re buying rather than how they’re buying it.
Do that and you’ll really reap the rewards.
1 Source: UK Cards Association
2 Source: Consumer Payments 2015: Trends, Developments and Prospects, by Euromonitor International -source: © and database right Euromonitor International PLC 2011. All rights reserved.
3 Join the contactless revolution is an independent (publication) and has not been authorized, sponsored, or otherwise approved by Apple Inc. Apple Pay is a trademark of Apple Inc.
4 Source: MarketsandMarkets’ Fingerprint Sensors Market by Type (Swipe &Area), Technology, Material (Optical Prism, Piezoelectric, Capacitive & Adhesives), Application (Mobile, Government, Healthcare, Commercial Security & Others) & Geography - Global Forecast to 2014 – 2020.