In recent years, the U.S. has been adopting the use of contactless payments more rapidly. Now, COVID-19 has accelerated the adoption due to hygiene and safety issues. This article is about the significant traction this payment method has gained among both consumers and merchants, as well as about the best high risk merchant account you can open for your business.
Contactless Payments & High Risk Merchant Account
During contactless transactions, the card gets connected with a point-of-sale (POS) terminal through NFC (near field communication) or RFID (radio frequency identification).
Many merchants processing contactless payments use transmission-level encryption for card data encryption as it’s being sent from the POS terminal to the processor. A recent survey in the field reveals that for 50% of consumers, contactless payments offer more health-related safety as compared to cash or cards.
Thanks to the NFC technology, users can complete payments by waving their physical card or mobile wallet equipped with NFC tech near an NFC POS terminal. Lots of retailers are now proactively encouraging contactless payments.
To enable your customers to enjoy reliable and low cost payment processing solutions, including a high risk merchant account, you need to find a respectable processor to work with. When talking about contactless payments, you shouldn’t forget about increased levels of chargebacks and fraud. So, make sure to turn to a processor that can best help you combat fraud and reduce chargebacks.
What the Numbers Show
Let’s look at some stats. According to MasterCard:
- There was 40% growth in contactless payments during the 1st quarter of 2020, which also continued in June, thus accounting for a striking increase as compared to 2019.
- 40% of all the mentioned transactions are contactless.
- Contactless is a cleaner method to make payments for 82% of consumers.
- 74% of consumers are planning to go on using this option even after COVID-19.
In the U.S., 51% of people have opted for mobile wallets like Apple Pay, and other tap-to-go credit cards. 60% of people using Visa who live outside of the country have gone for tap-to-pay Visa. Visa expects to see over 300 million contactless cards being circulated by the end of this year.
So, COVID-19 has resulted in tectonic changes in payments. If you’re looking for ways to stay afloat or make strides, don’t ignore the significance of mobile wallets and contactless card payments.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country that provides the safest and cheapest high risk merchant account in the field. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.