The U.S. Payments Forum released its latest Market Snapshot providing a look at the state of the industry, including the adoption of contactless, the transition to EMV at the pump, trending topics, and current Forum priorities and projects.
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State of the Market: Industry prioritizes touchless customer experiences and changes at the POS due to COVID-19, delays EMV liability shift date for automatic fuel dispensers
With more emphasis on reducing transmission of germs and bacteria than ever, the payments industry has prioritized the touchless customer experience. One of the major parts of this shift has been accelerated contactless adoption. Visa reported that contactless usage in the U.S. has grown 150% since March 2019. Nine out of the top ten U.S. issuers are actively rolling out contactless cards to customers, with 175 million Visa contactless cards in the market. Mastercard reported a 40% jump in contactless payment transactions during the first quarter of this year alone, and found that 80% of contactless transactions are under $25, a range typically dominated by cash. In the U.S., Discover Network experienced a 46.1% increase in contactless spending in-store from Q4-2019 to Q1-2020.
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This adoption comes alongside a change in consumer beliefs, with 50% of respondents to a recent American Express survey agreeing that contactless payments are safer for personal health than paying with cash or inserting a card. The survey also found that 58% of consumers who have used contactless are more likely to use the technology now than before the pandemic. Stakeholders at the recent U.S. Payments Forum virtual meeting, held over a two-week period this July, agreed that contactless adoption will continue to grow as consumers rapidly get comfortable with the technology.
“The COVID-19 pandemic has brought immense change to the payments industry, shown in how effectively merchants have responded to calls for cleaner payments and reduced touchpoints across brick and mortar stores,” said Randy Vanderhoof, director of the U.S. Payments Forum. “Industry leaders are dedicated to addressing these necessary changes and are still meeting virtually to remain connected in these times. Merchants and issuers are working to offer as many options as possible for consumers.”
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