Contactless dominates SA card payments

FNB has revealed that contactless payments now account for more than 50% of all card payments by its customers. Their preference for chip and PIN payments, where the customer inserts their card into the point-of-sale device, continues to decline.

The bank says awareness, security and convenience are some of the key contributors to the accelerated adoption of contactless payments.

Card swipes represent less than 1% on credit cards and Fusion accounts, while contactless accounts for more than 60% of all transactions.

“Consumers have shown a strong preference for contactless payments using their contactless-enabled cards or smart devices,” says Ashley Saffy, head of spend and customer value management at FNB Card. “One of the key reasons is that contactless payments are more convenient and faster than swiping or inserting a card. They also offer a higher level of security because they use Near-Field Communication (NFC) technology, which is less vulnerable to Fraud like traditional “contact” driven payment methods.

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“In addition, the COVID-19 pandemic has accelerated the shift towards contactless payments, as they do not require physical contact between the customer and the point of sale.”

This is answered by Jason Viljoen, head of card digitization at FNB, who says: “Our customers are increasingly choosing safer and more convenient payment methods, such as using virtual cards linked to their digital card wallets, both for Online and in-store shopping To support this migration, we will continue to expand the choice of FNB-enabled digital card wallets.

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“In addition to our own FNB Tap & Scan to Pay, customers can also use various digital card wallets supported by FNB Pay, including Apple Pay, Google Wallet, Samsung Pay, Fitbit Pay, Garmin Pay and Swatch Pay. Customers , who adopt these solutions, realize further value through our world-class rewards program benefits and peace of mind with purchase protection.

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According to FNB, beyond security and convenience, contactless payment options also have additional benefits for users. This includes faster transactions, as customers may not be required to enter a PIN for certain transactions. Both merchants and customers can also minimize queuing time when shopping in-store by processing payments in seconds compared to the traditional methods of inserting or swiping their card. Cash displacement is an added benefit, as the use of cash can be expensive for both the consumer and the retailer, while also posing security and hygiene concerns.

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