Increased retail uptake driven by tangible benefits to both consumer and retailer
Whether it’s Starbucks, IKEA, Greggs or McDonald’s, high street chains were quick to recognise the value of the technology. It is now rare to see any terminal that does not accept contactless cards or the major digital wallets Apple Pay and Google Pay.
What are the factors driving the uptake? Firstly, payments with a contactless card are quicker, easier and more convenient than chip and PIN, meaning most users prefer it. Contactless payments do not require entering a PIN (apart from the occasional security check), making the transaction much smoother.
The reduced hassle and shorter waiting times mean that more transactions can be processed, allowing some retailers to reduce the staff and time spent on the till. Furthermore, more and more people don’t carry cash and routinely use their contactless card in cafés, pubs and most other places they’re likely to purchase something on a routine basis. In fact, the UK ranks as the third most cashless country in the world, only eclipsed by Canada and Sweden.
Chip and PIN is still popular, but since contactless payments overtook this method in 2018, it is evident that catering for this technology is a need for businesses rather than just a “good-to-have”.