Biometric payment cards are expected to play a major role in a trend towards the use of multi-factor contactless transactions in the aftermath of COVID-19, ABI Research forecasts based on new research.
Contactless payment card issuances are expected to increase by 110 million more than previously expected to more than 2 billion in 2020, driven by demand for touchless interactions due to the pandemic. The new numbers mean that issuance estimates are up 6 to 8 percent from estimates made prior to the pandemic, for total year-over-year growth of 14 percent. Nearly two out of three new cards this year are expected to be contactless.
“Although the overarching trend toward contactless was well in place prior, COVID-19 will further increase the speed of contactless adoption, particularly within countries and economies where cash remains king, and usage not only being encouraged by payment ecosystem players and suppliers but also by governments and health organizations including the WHO,” explains Phil Sealy, Research Director at ABI Research.
“The way people pay for things is rapidly evolving and changing. COVID-19 has driven a significant shift in consumer spending habits spurred by economic uncertainly and a push toward the purchase of mainly essential items. There is also a surge in e-commerce whereby consumers are becoming even more heavily reliant on online retail channels to avoid crowded places to limit social interactions,” Sealy points out in the press release.
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