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Developments in technology and ease of use contribute to the growing popularity of contactless payments in all their forms. What does it mean for banks?
Over 50% of Gen-Z and baby boomers prefer contactless payments over any other payment method. As a result of preference shifting across all age sectors, issuing banks started to launch contactless cards.However, consumer demand and competition from digital wallets such as Alipay or Google Pay have heated up the competition in contactless payments availability across regions.
Smartphones turning into payment terminals
Technology giants like Apple will soon allow their gadgets to accept payments.
Contactless payments are slowly becoming part of the ‘on-demand economy’. They allow users to connect a card to an app once and then make unscheduled recurring payments.
Banks must adapt to the rising customer demand for contactless payments. If not, they stand to lose clients to more agile competitors.