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June 22, 2020 • Issue 20:06:02

COVID-19 driving debit card,

contactless payments

Contactless payments (sometimes referred to as tap-to-pay)
have been slow to take hold in the United States, although
they enjoy widespread adoption in other countries. "We've
been pushing it for years, and it's been going really, really
well; however, this [coronavirus] is an incredible catalyst
for it," Oliver Jenkyn, executive vice president and regional
president for North America at Visa Inc., said in a June 3,
2020, earnings call.
Contactless displacing cash

Craig Vosburg, president, North America at Mastercard of-
fered a similar assessment. "I believe long before COVID
we were finally at the point where the U.S. was on its way
to becoming a contactless market," he said in a June 3 call
with analysts. "I believe that even more today, and that
we'll get there sooner because of the circumstances we're in
with COVID." He added that more consumers are embrac-
ing contactless payments, and more merchants are encour-
By Patti Murphy aging contactless use.
he coronavirus pandemic is changing the way Contactless payments can be initiated using cards or mobile
many Americans choose to pay. They are less device apps. Visa reported that U.S. issuers have distrib-
inclined to use cash, more inclined toward debit uted about 200 million Visa-branded credit and debit cards
T than credit cards, and becoming much more com- embedded with near field communication, the technology
fortable with contactless payments, whether that involves that support contactless. Visa expects that number to reach
using contactless-enabled cards or apps on mobile devices. 300 million by year end. In addition, AmEx reported that
all new and renewed cards now being issued in the United
While there is no definitive evidence that the coronavirus States are contactless enabled. Vosburg said.
can spread through cash handling, consumers have a new
affinity for options that allow for low- to no-touch pay-
ments. Among consumers recently surveyed by American
Express Co., 16 percent said they are less likely to use cash Contributed articles inside by:
now than they were before the pandemic. Fifteen percent
said they are less likely to insert (dip) or swipe their pay- Marc Beauchamp ..................................................................................24
ment cards.
Nicholas P. Cucci....................................................................................26
Data compiled by Fiserv revealed that among merchants Lee Jones .................................................................................................28
using Clover POS devices, cash transactions are down 8
percent since the start of the year. Indications are that at
least some of these transactions are moving to contactless. TOC on page 3
Fifty percent of consumers surveyed by AmEx agreed with
the statement that "using contactless is safer for personal
health than using cash or inserting or swiping a card."
Continued on page 23