Increased Growth of Contactless Payments
The world today is facing unprecedented challenges due to the global coronavirus pandemic, which is disrupting everyday life as we know it. One of these challenges is navigating how to safely run essential errands while trying to “social distance.”
Due to COVID-19, the trend of touchless payments (tapping to pay with a mobile device or a contactless credit and debit card) significantly increased in the United States.
Before the pandemic, Americans were hesitant to adopt contactless payment methods due to perceived security risks and fear of fraud. The increasing trend in touchless payments makes sense. Per CDC recommendations, individuals should limit contact by avoiding frequently-touched surfaces, such as public card processing machines.
As a result, there is a noticeable behavioral shift towards touchless payments. For instance, Visa reported 31 million Americans used a Visa contactless card or digital wallet in March 2020. This represents a 150% increase since March 2019 in the United States alone.
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Prime Meridian Capital Management is an investment management firm specializing in online Peer to Peer (P2P), marketplace lending, and specialty finance strategies.
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