These days the hard cash payments have reduced drastically which is replaced by or has increased the cashless payment or what we can say as the contactless payment. There is a virtual war between the digital payment investors since years. It can be to give better standards for digital payments or to adopt stable, sustainable and reliable contactless payment system. There are number of such investors but leading are Google pay, Samsung pay and apple pay. The journey of these investors was not easy one, they had lots of hoops to pass through to become efficient ones in the market. The main factor to support the digital payment lately was COVID-19 without any question. Due to this situation the banks, originators and other financial domains had to make quick decisions towards digital payments, these decisions were to support them on a long run.
There are several elements for contact-less or digital payments but there are 3 important elements; they are safety, security and convenience.
- Safety – there is no chance of infection through contact-less payments as there is no need of touching third party machines, which is a major concern in consumers.
- Security – the tokenization approach being followed is safer for payments also it lowers the chance of online fraud as the token can be used only once for a transaction.
- Convenience – being able to carry out the transaction with a single touch and from wherever a person is, makes life much easier. This has actually drove many consumers towards the contact-less/digital payments.
We are living in unpredictable times; we never know what comes next and the pandemic is so far the best example for the same that made the demand for contact-less payment to grow more. It is advisable to switch from conventional payment system to contact-less payment system; however, it depends on the requirement and demand that the institution has. So, one has to think of consumers’ needs and then adopt the suitable financial operation for their institution.