# The future of contactless payments Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-12 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: The Rise of Contactless Payments in a Cashless Society Meta Description: Discover the benefits of a cashless society with contactless payments. Convenient, traceable, and hygienic, the way we pay is changing. Find out more! URL: https://financedigest.com/the-future-of-contactless-paymentshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1416934152-1736815234654-compressed.jpg) _By_ **_Stacey ONeill_** _, Managing Director, Nationwide Courier Services,_ [_https://nationwidecourierserviceltd.co.uk/_](https://nationwidecourierserviceltd.co.uk/) Contactless payments are a fairly new modern feature which involves the purchase of goods and services without the need for contact. From smartphone wallets to apple watches, gone are the days when you’re relying on a chip and pin. The convenience and simplicity of contactless payments have made it an easy way for customers to make purchases, reducing the need for cash and cards. As a result of the pandemic and hygiene being a huge priority for business, [contactless interaction is a must-have and has plenty of room to grow over the next few years](https://www.financedigest.com/10-years-of-contactless.html "10 years of contactless"). [**Methods of contactless payment**](https://www.financedigest.com/freelancer-payments-methods-what-you-should-know.html "Freelancer Payments Methods: What You Should Know") _Cashless society_ There’s a strong likely hood that you’ve noticed many [small businesses](https://www.financedigest.com/how-banks-will-evolve-to-support-small-business-owners.html "How banks will evolve to support small business owners") or stores advertising the fact that they are cashless. This not only prepares customers for a contactless or [digital payment](https://www.financedigest.com/can-i-please-speak-to-someone-why-building-relationships-is-still-crucial-in-digital-payments.html "“Can I please speak to someone?” Why building relationships is still crucial in digital payments") but also makes finances a lot more traceable for companies. [Cash is becoming less and less popular amongst customers and businesses](https://www.financedigest.com/europe-burns-cash-to-help-businesses-in-deepening-energy-crisis.html "Europe burns cash to help businesses in deepening energy crisis") and with so many new options available, the downsides of using cash is starting to show. But what are the benefits of this new cashless society? - Convenience - Prevents crime and theft - Traceable - Efficeincy for refunds and returns - Hygeine benefits - Reduces lose change - Reduces the need for manual counting Research has shown that the [world is well](https://www.financedigest.com/cricket-injured-buttler-progressing-well-ahead-of-t20-world-cup.html "Cricket-Injured Buttler ‘progressing well’ ahead of T20 World Cup") on its way to a cashless society. Having coins or notes is [becoming less frequent due to the inconvenience it causes and the fact that lose change](https://www.financedigest.com/quidditch-becomes-quadball-as-sports-bodies-change-name.html "Quidditch becomes quadball as sport’s bodies change name") is pretty much dead money. This concept is also relevant to [modern day](https://www.financedigest.com/who-is-the-modern-day-cfo.html "WHO IS THE MODERN DAY CFO?") travelling and currency exchange. Most [bank organisations now have their own private](https://www.financedigest.com/gucci-banks-on-private-salons-for-the-ultra-rich-to-revive-sales.html "Gucci banks on private ‘salons’ for the ultra-rich to revive sales") exchange rates and using your card or phone abroad has never been easier. _Smartphones_ A recent study reported that 27% of small businesses have seen an increase in [customers using their mobile](https://www.financedigest.com/communicating-with-the-customer-is-the-future-of-mobile-banking.html "Communicating with the customer is the future of mobile banking") phones or contactless cards to make purchases. Methods such as Apple pay or Google pay allow [customers to make a purchase](https://www.financedigest.com/britains-nationwide-curbs-cryptocurrency-purchases-by-customers.html "Britain’s Nationwide curbs cryptocurrency purchases by customers") directly from their phone, storing their details in a digital wallet. As most people take their phones everywhere with them, this is one of the most convenient and simple ways for customers to make a purchase. Not only do you not have to worry about forgetting your card, but you also don’t need to enter a pin and all data is transferred straight to a [mobile banking](https://www.financedigest.com/danich-local-and-regional-banks-launch-mobile-wallet-powered-by-nets-new-hce-and-tokenisation-platform.html "DANICH LOCAL AND REGIONAL BANKS LAUNCH MOBILE WALLET POWERED BY NET’S NEW HCE AND TOKENISATION PLATFORM") app. Let’s take a look at both the positives  and negatives of using smartphone payments. **Positives** - Connects straight to a [banking app to trace transactions](https://www.financedigest.com/igtb-launch-digital-transaction-banking-available-as-saas.html "iGTB launch Digital Transaction Banking available as SaaS") - Convenient - Worksalongside barcodes and online purchases **Negatives** - Can be accessed by mobile hackers - Exposed to public wifi - Not spend limit Stores and companies are also opting for [digital wallets in terms of memberships cards or loyalty](https://www.financedigest.com/the-evolution-of-loyalty-and-its-place-in-the-digital-age.html "THE EVOLUTION OF LOYALTY AND ITS PLACE IN THE DIGITAL AGE") schemes. Smartphones store all these cards in one place, just like a physical wallet would do, making it much simpler for customers to collect points, [pay for their purchase and have an online](https://www.financedigest.com/four-innovative-ways-to-pay-for-products-online.html "Four Innovative Ways to Pay for Products Online") receipt. **_Point-of-Sale Terminals_** Point-of-sale (POS) systems are found nearly everywhere, allowing customers to swipe a card and [process the payment](https://www.financedigest.com/are-your-payment-processes-in-cheque-for-the-new-legislation.html "ARE YOUR PAYMENT PROCESSES IN CHEQUE FOR THE NEW LEGISLATION?") in just a few seconds. These systems have been around for many [years but are constantly needing to facilitate to new advancements such as Apple](https://www.financedigest.com/an-apple-a-year-half-of-iphone-users-will-upgrade-to-the-iphone-7.html "AN APPLE A YEAR: HALF OF IPHONE USERS WILL UPGRADE TO THE IPHONE 7") Pay. These devices allow customers many options when it comes to purchasing goods or services, equipped with a classic chip and pin, card swipe, [contactless card](https://www.financedigest.com/should-we-be-more-cautious-about-contactless-1-in-4-young-adults-with-contactless-cards-say-theyve-increased-their-spending.html "Should we be more cautious about contactless? 1 in 4 young adults with contactless cards say they’ve increased their spending") payment and smartphone connection. These systems are still [important as not every customer](https://www.financedigest.com/the-importance-and-growth-of-banking-ecosystems-to-create-superior-customer-experiences-and-value.html "The importance and growth of banking ecosystems to create superior customer experiences and value") will have access to a smartphone or are vigilant about their spending habits. **_Contactless delivery_** Similar to contactless payment, [contactless delivery](https://nationwidecourierserviceltd.co.uk/the-future-of-no-contact-delivery/) has also become a common practise which many businesses now opt for. With so many advancements in parcel tracking, [customer communication](https://www.financedigest.com/talk-to-me-the-changing-face-of-customer-communications.html "TALK TO ME :THE CHANGING FACE OF CUSTOMER COMMUNICATIONS") and health and safety, contactless dlivery offers many of the same benefits. With industries such as takeaway and food services these two process often come hand in hand, with either a [payment being taken online or through a card](https://www.financedigest.com/fingerprints-supports-two-more-biometric-payment-card-launches-in-the-mena-region.html "FINGERPRINTS’ SUPPORTS TWO MORE BIOMETRIC PAYMENT CARD LAUNCHES IN THE MENA REGION") machine and the parcel being left at a doorstep. With e-commerce and [online shopping](https://www.financedigest.com/the-high-street-is-dead-long-live-online-shopping.html "The high street is dead – long live online shopping! ") becoming such a huge feature, majority of transactions are taken through mobile apps or an internet browser and delivered directly to the customer, with imagery proof attached. Contactless [delivery benefits both the customer](https://www.financedigest.com/bahamas-regulator-holds-ftx-assets-pending-delivery-to-customers-creditors.html "Bahamas regulator holds FTX assets pending delivery to customers, creditors") and supplier. [Courier services](https://nationwidecourierserviceltd.co.uk/) save time rescheduling or waiting for customers and the customer gets their parcel when they expect, typically left in a safe place. This method, combined with [contactless payments](https://www.financedigest.com/curating-a-fully-contactless-customer-experience-for-payments.html "Curating A Fully Contactless Customer Experience for Payments ") make for a swift, simple transaction where minimal human effort is required and reliable technology is used along the way. **The future** The [future of contactless payments greatly depends on technological](https://www.financedigest.com/technology-skills-and-servitization-a-brighter-future-for-manufacturing.html "TECHNOLOGY, SKILLS AND SERVITIZATION: A BRIGHTER FUTURE FOR MANUFACTURING?") advancements as a whole. This method has seemed to [move alongside device updates and mobile](https://www.financedigest.com/the-sleeve-labels-market-to-be-on-the-mobility-move.html "The Sleeve Labels Market To Be On The Mobility Move") so predicting where it could go is almost impossible. There is a constant stream of updates [year on year and businesses](https://www.financedigest.com/novartis-to-spin-off-generics-business-sandoz-next-year.html "Novartis to spin off generics business Sandoz next year") will have to support these updates for there to be an effect. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---