The UK and Canada, in stark contrast to the U.S., see a lot of contactless transactions. IBSJournal, citing data from Barclaycard quantifies the UK market for contactless:
In the UK, contactless payments have become ubiquitous, with 6 in 10 Brits paying by tapping their card or phone.
According to data from Barclaycard, more than £60 billion has been spent using contactless cards and devices in the decade since the technology was first introduced, and the usage is projected to rise by a further 317% by 2021. In particular, the clothing and retail industry has seen the highest growth, with an increase of 321% year on year rise.
Having embraced contactless both with consumers and merchants, it is fascinating to observe from the other side of the pond where contactless is nascent at best, some of the payment form factors that are available. This article outline some of the contactless payment options available now and on the horizon:
Mobile payments, like Apple Pay and Android Pay, have too become increasingly popular, with Apple having since advanced its technology to now allow users to pay with a single tap on iOS apps and websites on Safari, making it easier to pay on the go.
Kerv, the contactless payment ring is linked to a prepaid account which can be topped up on the mobile phone, and doesn’t look like a gadget of payment technology. BPay, by Barclaycard, allows users to pay
Apple Pay Cash follows the giant’s venture into fintech with Apple Pay, which came to the UK last year. The feature is similar to PayPal and Square Cash in the US, where Venmo money messaging app is hugely popular among millennials.
In the UK, Transferwise added the ability to send cash via Facebook Messenger earlier this year and money transfer via messaging is also an element of other fintech apps, such as Circle. Apple is not the only tech giant eyeing up mobile payments either. Google yesterday launched Tez in India, its first standalone app for money transfers.
Other forms of alternative payment are also on the rise. Just this week, GoCardless, a direct debit network based in London, has raised a further $22.5 million in funding from existing investors Accel, Balderton Capital, Notion, and Passion. The company has now raised a total of $47.5 million since its inception in 2011.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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