Due to the COVID-19 pandemic that surged in the U.S. this past March and April, consumers everywhere have been taking many steps to reduce human interaction and avoid handling of objects that could be contaminated with germs. One significant way this has manifested itself is through the notable uptick in contactless (NFC) payment usage. Upon analysis of Cardknox merchants’ processing volumes—which are reflective of a wide range of industries and geographies—Cardknox observed a 150% increase in contactless payment usage between November of 2019 and April of 2020.
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While some of Cardknox’s reported growth in contactless use may be due to a general desire among merchants and software developers to adopt new industry trends, Cardknox has not seen such widespread interest in implementing contactless technology until quite recently, which hints to the fact that there are other factors at play—namely, consumer concerns regarding the spread of germs. Unlike other payment methods, contactless payments such as mobile wallets and contactless cards are entirely touch-free and thus provide greater peace of mind during the coronavirus pandemic.
In response to the shift towards contactless payments, Cardknox has been working closely with developers and merchants to prepare in-store setups that support contactless processing. In addition to running a promotion earlier this month to offer free contactless payment terminals to new customers, Cardknox has been assisting clients with enabling their existing payment terminals’ contactless capabilities. Since many Cardknox-supported terminals already have built-in support for contactless processing, the upgrade process is often quite fast and easy for Cardknox customers.
“Now that demand for contactless payments has shot up in the U.S., it’s very likely that consumers and businesses are going to want to stick with this convenient payment method for the long haul,” says Cardknox CTO Yanky Weiss. “As we help our clients upgrade to contactless technology to support their unique needs during the pandemic, I feel confident that we’re also helping them cater to long-lasting customer preferences that will enhance the in-store checkout experience for years to come.”
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