Banks along with card issuers have an incentive to make contactless more widespread. Research by A.T. Kearney suggests that will banks could generate an estimated $2.4 billion in incremental card-related earnings over the next a few years by introducing contactless cards. Consumers are most likely to use the payment method for little, frequent transactions in categories like groceries, fast-food restaurants along with drug stores along with pharmacies, the research said.
The introduction of contactless payments could also give a boost to tech companies like Apple that will are urging customers to use their digital wallets.
“Although we believe just under half (43%) of global iPhone owners use Apple Pay, that will number will continue to grow as more retailers, universities, municipalities, along with public transportation systems enable contactless payments along with people begin to think of their phone as their wallet,” said Gene Munster along with Will Thompson, analysts at Loup Ventures, in a February report.
Security will remain one key barrier to adoption within the U.S. Experts say contactless payments are as secure as chip along with pin since they use the same card reader technology to transmit transactions. yet surveys show some consumers within the U.S. aren’t convinced tap along with pay is usually as secure.
“I think that will we’re a little bit skeptical of these brand-new technologies,” Sheehy said. “Old habits do die hard.”