The EMV chip technology we have urged-to-use for over decades now, is going mainstream. A small contactless and contact-based chip that emits frequencies in which information is exchanged. Dive into everything technical, and go visit our blog on EMV chip security, but don’t pullout too quickly, not just yet, we’re putting into perspective what comes next in EMV technology and its contactless payments applications.
The Pandemic State of Contactless
For the past 10 years, banks across the MENA have witnessed, implemented, and enjoyed the success and benefits of EMV chip migrations, and consumers the speed and convenience of contactless payments.
The speed of contactless payments coupled with its great security features brought by EMV chip technology ensures that over time contactless card usages will increase and the displacement of cash inevitable.
Nowadays, the demand for contactless payments from merchants and banks is growing at an exponential rate. Here’s a little seasoning from MasterCard Global Consumer Study 2020.
Domestic Statistics:
- 2017 contactless transactions grew by 27 folds in MEA, mainly driven by a wide acceptance network.
- in Q1 of 2020, 70% of MEA had used some form of contactless payments.
World Statistics:
- In the world 46% of the banked population swapped their payment cards for contactless cards.
- 79% of the world banked population are using contactless payments nowadays.
Isn’t it clear yet?
MasterCard anticipated that by 2023, 4 of the world’s continents will be fully contactless enabled, but the consumer behavioral changes brought up by the pandemic has set a higher ceiling, where the speed of payment is much needed at the speed of now.
Let’s talk what comes next in contactless payments
Extra Security for Greater Security
While it might seem like a progressive technology, making it look a little too easy to be safe, EMV chip technology is designed for security… well, so far, unparalleled transaction security and speed. The physical security of contactless payments cards, in other words, its physical possession makes your money prone to theft, but don’t you worry, your bank will return all your stolen money as long as you report your payment card’s theft.
With the rise of contactless transaction limits, and the wide acceptance network of over 8 million destinations worldwide, governed by the ever-evolving interoperability amongst the different payment networks around the world, issuers should take a deeper loon into their EMV contactless security features.
Biometric authentication
Biometric authentication for payments is a common feature on mobile wallets and mobile banking apps. Fingerprint features on payment cards are now being enrolled as a full-proof security solution for all EMV card application, whether contactless or contact based.
Two-Factor Authentication when you really need it
Contactless payments should be frictionless, or else it ruins the purpose of contactless. New authentication technology such as facial authentication, biometric fingerprints, and voice recognition solutions are creating a frictionless two-factor authentication without getting in the way of cardholder convenience.
Multi-Application Features on your EMV Chip
In an ultra-connected seamless society, single-purpose payment platforms, whether payment cards or mobile banking apps, deem unattractive to the modern consumer. With Internet of Things making it possible to reach new potential in payments, banks and financial players including fintechs are able to create appealing solutions that tackle modern transactions pain points such as, cross-border payments and international payments that most travelers experience. We offer Openway’s Way4 payment platform that creates omni-channel banking experience helping the banks seal its payments portfolio with purposeful payment offerings such as cross-border mobile wallet and multi-currency cards.
Let’s talk payment card issuance
What says more contactless and touchless than a virtually issued payment card? Virtual issuance offers more control and security over the physical card, and makes it easier to use digitally for endeavors such as e-commerce payments, since it’s easier for a business or individual to deal with digital billing.
Preparing to choose your type of payment card? Think of its use-cases and purchasing capabilities. Physical cards remain favored for a variety of endeavors, including travels, physical branch visits, ATM, and majority of payments that involve showing your card such as hotels, and travel agencies. For many reasons the physically issued payment card remains favored as it offers greater access, interoperability and acceptance over the merchants’ network, and for identification purposes for cardholder.
EMV Chip Technology Powering contactless of the future
Cashless is here to stay and will continue to dictate how people pay. The pandemic has brought up enormous cataclysmic changes to the way we pay, and will continue to affect the hundreds of millions of peoples’ purchases. The strategic significances of EMV migrations and contactless-payments on the entire banking value chains.
EMV for a circular economy
Cash circulations and usage remains the majority of payments across the globe, but had also proved inefficient and non-sustainable. For many governments, banking ecosystems, and regulatory bodies, contactless payment platforms powered by EMV chips are perceptively creating faster, secure and reliable alternative to build a circular economy
EMV for Future-proof Merchants
The pandemic has ruled over the limitation of cash in certain geographies, in other geographies regulators and governments pushed for merchants to abandon cash-based payments and rely on contactless and contact-based transactions. For both ticketing and purchasing, whether on low-value or higher-value, cash-heavy merchants found higher return and billing efficiency with contactless payments.
EMV to Improve day-to-day of bank-savvy customers
Less time in a queue, more pocket space and easier financial planning makes contactless all-so-appealing to consumers as they go-by their everyday life. Hold your card and tap your way out of the line with fast, secure, and reliable speedy contactless payments.
EMV as Ultimate value for Payment Providers and Issuers
For many banking institutions the physical payment card tends to be a major revenue contributor to their bank; issuing EMV chip-enabled payment cards for customers has been heightened with contactless payments that bring up higher impulsive purchases, meaning more fees for your acquirer and more opportunities for the issuer as the contactless payment card becomes a front-of-wallet item that the user regularly or indefinitely uses for all their purchases.
EMV Chip Technology for Greater Interoperability amongst Parties
A yet clearer advantage when it comes to creating EMV contactless cards, is the multi-application usages that can now be hooked too from other technology providers or payment solutions provider so banks and issuers in particular, can provide added-value services to their customers. Having this form of interoperability between technology providers and banks, adds major benefits for all parties involved. Technology vendors have utilized their state-of-art solutions to the masses, the bank in return is promised with customers’ satisfaction and higher retention, and the consumers would have purchased their wants and needs with a safe and speedy payment method.
Infotec Systems as a trusted payment solutions provider
At Infotec we pursue contactless payment adoption as a long-term plan that can optimize your banking operations and keep you closer to your customers through growing your contactless payments portfolio and keeping you up-to-date with their growing need for contactless payments, our proven expertise and market-place power enables us to support our banking partners across all stages of developing and deploying contactless payments solutions.
No matter the game plan, banks need the right partner to raise their capabilities and ensure the victorious deployment of their contactless technologies to the market.
Infotec keeping your wheels of innovation running!