Transit could drive contactless payment growth
The U.S. Payments Forum released its quarterly Market Snapshot, providing a look at the state of EMV chip adoption in the U.S., fraud, what’s next for payments in 2019, and Forum priorities and projects for the year.
Contact chip payments are now firmly ingrained in the U.S. market, with payments volume coming from chip-enabled merchants approaching 70%. To improve customer experience and provide more payment choice in-stores, the payments industry is now turning its attention to contactless chip technology for fast and secure payments with a tap of a card or mobile device. Momentum is growing: tens of millions of contactless cards are expected to be issued this year and 78 of the top 100 merchants accept contactless payments today.
Just as in other countries, the U.S. Payments Forum expects that transit will be a driver for contactless payments in the U.S. Large transit agencies have moved or are moving to open contactless payments, including in Chicago, Portland, and New York.
“What we’ve seen in other countries, and expect to see here, is the contactless ‘halo effect’ when transit riders start using contactless cards,” said Randy Vanderhoof, director of the U.S. Payments Forum. “When a large transit agency moves to open contactless payments, issuers get cards in the hands of riders who quickly get used to tapping and seek it out wherever they can. As a result, contactless transactions rise dramatically at merchants in surrounding geographical areas. We’ve seen this in the U.K. and Canada, and will start to see this in the U.S. this year.”
Read the full article at Metro Magazine