In the COVID-19 Economy, Contactless Payments Keep Consumers, Retailers Safe

The image of a customer being passed a payment terminal taped to the end of a hockey stick to complete a contactless payment at a drive-thru has become a common internet meme on Canadian social media. This very Canadian solution of maintaining physical distance – while continuing to do business - serves as a valuable reminder of the important role contactless payments are playing in fighting the spread of COVID-19.Contactless payments – using payment cards or mobile wallet on your smartphone - have facilitated ecommerce and curb-side purchases allowing Canadians to support their favourite local businesses across Canada.  As Canada gradually re-opens within the guidelines established by public health authorities, contactless payments will continue to serve a critical role by providing citizens with a payment method that does not involve touching a screen or keypad when making purchases in stores.By efficiently allowing consumers to “tap and go” or “scan and go,” these payment methods reduce concerns about contamination by eliminating the need for customers to touch common surfaces As many businesses are operating as take-out only or providing limited services to customers, the ease of use and lack of physical contact associated with contactless payments are a positive for both customers and retailers.In addition to limiting physical contact with potential sources of contamination, contactless payments also provide customers with a sense of comfort during in-store transactions and can help to re-instill consumer confidence in the in-store, retail experience. This is evidenced by data from Paysafe which indicates that 63 percent of citizens are using contactless payments more than ever before, while 55 percent are worried about handling cash.Given this positive sentiment towards contactless payments, it is unsurprising that Canadians are not only increasing their use of contactless payments, they are also changing their spending patterns to respond to the demand for a safer shopping experience. According to Payments Canada, during the pandemic 42 percent of Canadians indicated they have avoided shopping at places that do not accept contactless payments, while 52 percent tried not to exceed the contactless limit when buying something in-store.As we transition to a new, socially-distanced economy, businesses will need to manage the expectations and comfort level of customers returning to its stores. Contactless payment methods can help, creating a sense of ease at the point of sale and allowing customers to continue their spending habits.Retailers benefit from contactless technology, a fact which national business organizations have highlighted during the pandemic. Contactless transactions are generally reducing bottlenecks at the point of sale. With social distancing guidelines in place, retailers are better served by a faster checkout process and shorter checkout lines.Electronic Transactions Association (ETA) members have been ahead of the curve in pioneering and implementing contactless payments. For example, ETA member issuing banks already offer contactless Visa, Mastercard, and American Express cards, and have increased contactless “tap limits” as a response to consumer and business demand during the pandemic. Mobile payment providers such as Apple Pay and Google Pay allow purchasers to use their smartphone to make purchases through a mobile wallet by holding their phones close to a point-of-sale terminal. And more and more, fintech providers are delivering new contactless technologies that improve the merchant and consumer experience at the point of sale.With all these benefits, it is important for the payments industry to increase the contactless limit for debit cards to $250 from $100.  This will allow debit cards to keep pace with the $250 contactless limit on credit cards and provide an additional option for consumers who want to purchase what they need in a way that is safe and comfortable.The ETA and its members in the payments industry have developed and long supported the use of contactless payments. Now more than ever, we are committed to keeping Canadians safe, while helping businesses survive amidst the uncertainty created by COVID-19 by providing and improving upon important innovations like contactless payments.Scott Talbott is Senior Vice President, Government Affairs, for the Electronic Transactions Association, the global trade association of the payments technology industry.  He received his B.A. from Georgetown University, cum laude, and his J.D. from George Mason University School of Law and has enjoyed public policy and public affairs roles in the financial services sector for over three decades.