CONTACTLESS PAYMENTS FEATURE NAME
When financial technology becomes fashionable
Last month marked the 10-year anniversary of the introduction of contactless technology in the UK. Since then, more than £60 billion has been spent through contactless cards
IBS Journal October 2017
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Junior reporter Henry Vilar
T
he popularity of contactless payments is rising as the figures show. Their usage is projected to rise by a further 317% by 2021, according to data from Barclaycard. If we also consider the fact that many surveys indicate that 55% of UK consumers will not be using cash within two years, and that the rest of the European countries, US & Canada are closely following this trend, it is clear that the “tap & go” tech has very much settled in. Juniper Research sees this growth very similarly, estimating the global value of contactless to be well over a trillion dollars by the end of next year.
The pointers don’t stop here. The demand for contactless is overtaking the one for Chip & Pin for many urbanites. By the beginning of the next year, WorldPay will allow many pop-up retailers, such as food stalls, to use their own phone as a contactless terminal, erasing the need for a Chip & Pin terminal completely. Predictions and trends all agree: the rise of contactless has been one of the main factors encouraging people to stop using cash. With only one in six Britons carrying cash, and 34% visiting an ATM once a month, the 50th anniversary of the ATM could also see the beginning of its decline. A controversial view, no doubt, but one that is backed up by a general trend in how cash is used in the UK.
For us here at IBS, it is hard to believe that the opposite view holds just as much water. Granted, it is true that cash is becoming alien for many Brits, but it is still widely used, with an ING
Cash is becoming alien for many, but it is still widely used
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Daniel Komitzer: Cash will slowly die out
survey earlier this year revealing that around three-quarters of Europeans would never go completely cashless. The tension between the contactless evangelists and sceptics is palpable, but as Daniel Komitzer, CPO at Paysafe, told IBS Journal, it may be a generational thing.
Time and place
“Look at companies that completely revolutionised other industries. Ten years ago you wouldn’t even think about getting in a stranger’s car, and now Uber has made that commonplace. AirBnB has had a similar effect,” Komitzer says. New ideas,
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