The COVID-19 pandemic has accelerated the adoption of contactless tech, transforming how we pay, travel, and interact. From tap-and-go payments to mobile check-ins, contactless tech is reducing physical touchpoints to keep people safe. In May 2020, businesses and consumers are embracing this shift, making contactless tech the new standard. This article explores why contactless tech is surging, its benefits, challenges, and how industries can leverage it.
Why Contactless Tech Is Booming in 2020
The pandemic has made hygiene a priority, and contactless tech minimizes germ transmission. A Mastercard study found 79% of global consumers prefer tap-to-pay due to safety concerns. Retailers like Aldi are posting signs to encourage contactless tech, while restaurants use QR codes for menus. With contactless tech adoption up 40%, per Mastercard, it’s clear this trend is here to stay.
- Health and Safety: Contactless tech reduces surface contact.
- Consumer Demand: Shoppers want fast, touch-free options.
- Business Adaptation: Companies are pivoting to meet new norms.
Key Drivers of the Contactless Tech Surge
Several factors are propelling contactless tech into the mainstream.
Contactless Payments Lead the Way
Near-field communication (NFC) powers contactless tech in payments. Mobile wallets like Apple Pay and Google Pay, along with tap-and-go cards, are booming. In 2020, contactless tech payments grew 40%, with markets raising tap limits to encourage use.
- Example: CVS rolled out PayPal and Venmo QR code payments nationwide.
Mobile Check-ins and Access
Contactless tech is reshaping hospitality and travel. Hotels use mobile apps for check-ins and digital keys, while airports trial facial recognition for boarding. Hilton’s app lets guests control room settings via contactless tech.
- Tip: Integrate contactless tech with CRM systems for seamless guest experiences.
IoT and Automation
The Internet of Things (IoT) enhances contactless tech in healthcare and retail. IoT sensors track PPE movement or enable touch-free doors, reducing exposure. Automation Anywhere’s software processes travel refunds contactlessly, saving time.
Benefits of Contactless Tech for Businesses
Contactless tech offers significant advantages across industries.
Enhanced Safety and Trust
Contactless tech reduces physical interactions, boosting consumer confidence. A Visa study found 47% of shoppers avoid stores without contactless tech payment options.
Faster Transactions
Contactless tech speeds up checkouts. Tap-and-go payments save minutes per transaction, cutting wait times at tolls, transit, and retail.
Data Insights
Contactless tech platforms like Revel Systems integrate with POS systems to track order statuses via SMS, providing valuable analytics.
Challenges of Contactless Tech Adoption
Despite its promise, contactless tech faces obstacles.
Infrastructure Costs
Merchants need NFC-enabled terminals, which can be pricey for small businesses. Older systems may not support contactless tech.
- Solution: Offer affordable contactless tech terminals, as Paycron suggests.
Consumer Hesitation
Before COVID-19, 60% of consumers saw no need for contactless tech, preferring card swipes, per 451 Research. Education is key to adoption.
- Solution: Use signage and tutorials to promote contactless tech.
Security Concerns
While contactless tech uses tokenization for security, fraud risks remain. The contactless tech payment market faces $3 trillion in potential fraud losses by 2027.
- Solution: Invest in real-time fraud detection, as Stratistics MRC recommends.
How Industries Can Embrace Contactless Tech
To succeed with contactless tech, businesses must act strategically.
Retail and Hospitality
Adopt contactless tech for payments and check-ins. Starbucks’ Mobile Order & Pay system boosted sales by streamlining orders. Hotels can use Conker’s barcode scanners for touch-free amenity access.
- Action: Integrate contactless tech with loyalty programs for personalized offers.
Travel and Transit
Airports should use contactless tech like Amadeus’ Airport Pay for baggage fees. Cities are enabling tap-and-go parking payments.
- Action: Trial biometric contactless tech for faster boarding.
Healthcare
Use contactless tech for patient check-ins and PPE tracking. Robots can handle repetitive tasks like sample transport, per HIT Consultant.
- Action: Deploy IoT-enabled contactless tech for real-time monitoring.
Real-World Contactless Tech Successes
Contactless tech is already making an impact in 2020.
- Daddy’s Chicken: Uses facial ID kiosks for payments and loyalty points.
- Apple: Offers no-contact delivery with verbal confirmation from a safe distance.
- ExxonMobil: Rolled out QR code payments at 11,500 stations.
The Future of Contactless Tech
The contactless tech market is set to grow from $10.3 billion in 2020 to $18 billion by 2025, per a March 2020 report. Innovations like wearable payments and in-car transactions will expand its reach. By 2027, global contactless tech transactions could hit $10 trillion, per Juniper Research.
- Biometrics: Fingerprint and facial recognition will enhance security.
- Sustainability: Contactless tech reduces paper receipts, aiding eco-conscious consumers.
- Integration: 5G and cloud-native tech will make contactless tech seamless.
Learn more about contactless tech at Mastercard’s insights. Visit our contactless solutions page for tools to get started.
Seize the Contactless Tech Opportunity
Contactless tech is not just a trend—it’s the future. Businesses that adopt contactless tech now will gain a competitive edge, ensuring safety and efficiency. Don’t wait for the next wave. Contact us to transform your operations with contactless tech in 2020.