Contactless acceptance has passed a tipping point in the U.S.
Learn how this trend can offer consumers an unmatched combination of simplicity and security, as well as lead to potential impacts to customer loyalty and decreased dependency on cash.
As the industry upgrades to EMV terminals, more and more merchants are implementing contactless & NFC payment capabilities:
of the top 100 merchants have enabled contactless technology
of new terminals are equipped with contactless hardware
And that number is slated to grow substantially over the next two years as major transit systems make it easier to move through major cities across America.
of all card transactions take place at contactless-enabled merchants throughout the country.
The Consumer Experience
of active smartphone
users say they are likely
to use contactless plastic
of consumers would prefer to Tap and Pay with their card
vs inserting or swiping
Customers value the speed, security, and simplicity that contactless delivers — even if they have smartphone options.
And not only is contactless faster than an EMV chip transaction, but because contactless removes pesky user mistakes, it leads to more efficiency for the merchant and increased customer satisfaction.
If most of the stores you shopped at gave you the ability to Tap & Pay with your card or Smartphone, how would you prefer to pay?
prefer making a contactless payment across various form factors showing the importance of choice
HOVER TO SEE DETAILS
Impact for Issuers
Creating “new tappers” can be lucrative for issuers: they not only spend more once engaged with contactless cards, but spend more often, visit fewer ATMs and are more loyal:
New tappers can lead to a 56% increase in spend per card compared to non-tappers
New tappers can lead to a 68% increase in transactions per card compared to non-tappers
New tappers can lead to a decrease in ATM transaction share compared to non-tappers
New tappers can lead to a 23% decrease in attrition compared to non-tappers
Contactless technology is poised for widespread adoption in the United States. And as new cards are issued, the urgency to act increases. Financial institutions who move sooner will likely see the greatest financial benefit by capturing top of wallet preference.
A wave of issuance is approaching
Early movers will gain top of wallet
Juniper estimates that 9% of U.S. cards are contactless today, or ~96MM cards, which will grow to 288MM by 2021
Banks that moved early to provide contactless have seen a first mover advantage to gain increased spend across the account
Contactless Adoption Lifecycle Stages
The U.S. market is 18-24 months away from the Accelerated Growth stage
Let's get started
Mastercard is working to create an environment that promotes adoption and growth of contactless technology. Let’s work together to develop a strategy based on your specific needs.
Contact us today to find out how contactless can work for you.
Mastercard Data Warehouse, March 2018
Omnibus study, August, 2018
Juniper 2018-2023 contactless forecasting
Cities with Contactless Transit Systems
NYC & NJ
Tap to pay with either my card or smartphone
Tap to pay using my smartphone
Tap to pay using my card
of contactless cards