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“Tap and go” technology is more popular than ever before
when accompanied by the right technology, “not only change industries, but people’s attitudes and the way they think”. He continues: “The same thing will happen with cash. It will take time – and cash is still very prevalent – but I believe we will see cash slowly die out.”
It is true that “people are becoming more and more technologically savvy, and demand more convenience”, as Suresh Vaghjiani, managing director of GPS, puts it. “We like to think that the transaction is something that you don’t even think about, and it’s seamless, is the best experience,” he states. However, he finds it remarkable that for many people, new fintechs are “taking it too far”. According to Vaghjiani, most consumers prefer a slight level of friction to confirm their own desire to go through with the purchase and to double check that all details are in order.
Komitzer agrees: “We use tech to recreate the personalisation that we get in old-school face-to-face payment interactions. It is also a matter of security. Identity fraud is becoming an increasing issue, and organised crime is on the rise, the right balance is somewhere in the middle.” While intuitive interface is the way to go, the one- click, or one-tap, payments are still a little too intimidating for many. At least for now. He believes that, in time, frictionless will prevail and that security mechanisms will be able to keep up.
Similarly, Komitzer also believes there is a geographic factor in action. Technology and security trends differ from region to region. For example, 3D secure authentication adds an extra layer of security, which many Westerners may find a nuisance. For Russian consumers, however, it is considered paramount for them to trust the bank’s security. It is true, though, that the progressive disappearance of cash is noticeable throughout the world, with many benefits for those in developed and underdeveloped countries alike.
Closely following the trend of contactless are wearables, which thread through the line between utility and fanfare. The Apple Watch – undoubtedly the most popular of all wearable devices –has received divided attention. But beyond Apple’s device there hasbeen a series of wearable alternatives that push the limits of payment innovation.
In the Netherlands, for example, homeless people have been given a jacket that allows them to receive €1 payments from contactless cards. Just under a year ago, Card Cutters launched a “swish & pay” scarf, which allows consumers to pay with a contactless chip placed at its end. Lastly, Kerv’s wearable ring, powered by GPS payment services, has enjoyed
Card Cutters launched a ‘swish &pay’ scarf, which allows contactless payments
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very positive feedback. Here at IBS Journal, we see success in its ability to allow owners to impress their friends at Tesco, but we find it hard to believe that a ring that doesn’t look like jewellery and that has a barely noticeable convenience factor, will take off.
This seems to be the issue with wearable devices – there’s little improvement when compared with mobile or contactless card payments. Not only that, but it seems that being forced to wear the same scarf every day may not hold great appeal for consumers. Vaghjiani believes this very issue is holding back at mobile. For many, bringing out the phone to Apple Pay or Android Pay is no more convenient than grabbing their contactless card.
www.ibsintelligence.com | © IBS Intelligence 2017
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