September 28th, 2020 - Payments
By Brian DuCharme, Vice President of Product Management, TNS Payment Solutions
In my earlier blog Online Fraud Expected to Become One of the Most Pressing Retail Issues Post COVID-19, I discussed some of the recent findings from the Future Scenarios Post COVID-19 report by The Secure Payment Council (SRPc), which assessed the most pressing initiatives the industry will need to tackle once the COVID-19 quarantine eases and businesses resume some kind of normalcy. The project involved a niche-focused study on the most pressing retail payment and debit network processing issues, and consulted nine industry experts, including myself.
In this blog I’ll discuss the effects the pandemic has had on contactless deployment as the panel scored this eight out of ten on the probability of occurrence and the same score of eight for the impact over the next six months.
The pandemic effect on cash usage
Cash usage has declined considerably during the pandemic not only due to the lack of spending, but also because the World Health Organization recommendation included a specific mention of washing your hands after handling money.
At TNS we have seen an acceleration in contactless payments within our global customer base as consumers increasingly see this as the safer way to pay, supported further by several countries raising their contactless spend limit. Retailers of all sizes need to be able to offer this option at their checkouts. Personally, I knew that contactless had finally arrived to the laggards, when my “cash-is-king” older brother confirmed that he, too, is using a card over cash.
We should also expect unattended devices, such as vending machines and ticket machines, to receive a boost in demand as an alternative way to pay.
Opportunity to enhance the buying experience
The new shopping habits being formed by the pandemic may have a lasting affect for many consumers, while some will likely revert back to long-held habits including the use of cash as a budgeting tool. In either case, retailers who respond with options now, may benefit from strengthened loyalty for offering consumer choice that promotes safety for their customer. What comes after COVID-19 is uncertain, but retailers should see this as an opportunity to enhance the buying experience with contactless payments being included as a standard way to pay.
Learn more about the Secure Remote Payments Council’s Future Scenarios Post COVID-19 Insights into the Near-Term Impact to the Payment Processing Business Report
Remember to visit our blog page again next week for further insights from this report, Customers Remain Cautious About Touching Public Surfaces in the Aftermath of COVID-19 and my earlier mentioned blog Online Fraud Expected to Become One of the Most Pressing Retail Issues Post COVID-19 is available now.
Brian is Vice President of Product Management for TNS’ FinTech Payments business and has over 20 years’ experience in the telecom and payments industries. At TNS, he leads a diverse global team and is responsible for driving product innovation for safer, more secure commerce.