With Covid-19, many consumers and businesses are turning to contactless payments to combat the spread. To meet current Covid-19 safety protocols, businesses have re-focused their safety standards and implemented new social distancing rules for their consumers. These new regulations have impacted both business and consumer behavior when it comes to making purchases and collecting payments. In fact, many businesses have seen an accelerated growth of consumers switching from cash and standard debit/credit card purchases to mobile payments. These behavior changes due to Covid-19, along with the growing popularity of Apple Pay and Android Pay, have made the amount of contactless payments surge over the last few years.

According to a new global survey by Mastercard, 8 of 10 consumers say they now use contactless payments and plan to continue to use that payment method after the pandemic. Additionally, Mastercard says they recently saw a 40% growth of contactless payments over the first quarter of 2020.

What are Contactless Payments?

Contactless payments are methods of payments that take place without physical contact between a customer and a vendor. This type of payment can occur through a NFC-enabled mobile device, Mobile Wallet, QR code, or an in-app purchase.  

For example, this type of purchase can be completed by placing a mobile device next to the merchant’s reading device. The reader then collects the encrypted information from the device to process the payment without any contact.

Below are four types of contactless payments:

  1. NFC-enabled. NFC, or near-field communication is a type of technology consumers use to send payment information from an electronic device to a point-of-sale (POS) terminal. This type of payment is mostly used by mobile devices.
  2. Mobile wallets. Mobile wallets include Apple Pay, Google Pay, and Samsung Pay. This type of app allows consumers to pay from their smartphone or smart watch using NFC technology. 
  3. In-app purchases. Any purchase facilitated by an app, such as food delivery apps like DoorDash or Uber Eats.
  4. QR Codes. These unique codes can be scanned by apps to make in-person purchased, peer-to-peer transactions, or online payments.

Benefits of Contactless Payments

  • Contactless payments are convenient and provide a quicker way to check-out for consumers than traditional credit cards or cash.
  • These payment methods are considered more secure that swiping credit cards because the data is quickly tokenized and encrypted.
  • Using Contactless payment options will help eliminate the need for signature or pin input which will help reduce the spread of germs or viruses such as Covid-19
  • Additional security layers can be added to limit the amount you can spend without a signature. This helps to reduce credit card fraud and identify theft.


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