The global pandemic created the need for several fundamental changes in the way businesses and individuals operate. One such pivotal innovation has been in the domain of security. Authentication technologies are rapidly evolving and the pandemic has caused a domino effect to the same. There is an evident emergence and adoption of contactless authentication across sectors.
Consumer preferences for contactless have been fueled due to the shift in their perceptions around safety and convenience. They do not want to indulge in practices that involve any surface contact or those that would need them to flout COVID protocols like social distancing or mask-wearing.
According to Salesforce report “99% of SMBs plan to offer contactless services permanently, leading with secure digital payments (78%), mobile orders (68%) and digital customer service (62%),”
Reasons for using contactless authentication
Let us delve deeper into the reasons why contactless authentication is growing post-pandemic and is here to stay:
- Convenience – Payment procedures are faster, simpler, and more practical. The in-store experience for customers is enhanced due to less queuing and elimination of the need to manage physical cash. The number of transactions made with a contactless card is rapidly increasing in early-adopter regions such as the United Kingdom, Canada, Europe, and Australia. “Tap and pay,” for example, currently accounts for more than 40% of all card transactions in the United Kingdom.
- Safety – According to a recent study conducted on touchless payments & authentication, 82% of the respondents said that it is the most hygienic way of carrying out transactions.
- Generates higher interest – In September, Amazon announced that customers who pay in-store will be able to use its Amazon One contactless palm scanning device. The e-commerce giant will install Amazon One at gates as a choice for customers, and it might become a form of payment or check-in for loyalty cards. in a blog post, “Amazon stated that “Amazon One may be part of an existing entry point to make purchasing more preferable and prevent potential revenue leakage due to safety reasons .”
- Creating an ecosystem – Contactless is not just limited to payments, it can pave the way to creating an ecosystem. People are increasingly looking for ways to avoid touching keypads, credit cards, doorknobs, and anything else. As the popularity of contactless payments grows, so does the demand for more ways to conduct touchless authentication. It can also be adopted by businesses in sectors that require ticketings, such as major events, music festivals, movie tickets, public transport, and many more.
- Higher revenue for other stakeholders – Contactless payment options is a win-win for both, the consumers and retailers. According to KBV Research, contactless revenues will expand at a 19 percent annual rate, reaching $18.6 billion by 2026. Banks will also be benefited since issuing will increase due to the higher prevalence of low-cash transactions using contactless cards. By 2023, there will be 2.7 billion contactless cards in use, thanks to the technology’s rapid adoption in regions such as the United States, Brazil, and South Asia.
- Scope of innovation – Authentication and payment is no longer confined to the traditional card format with contactless. It opens the way for interesting wearable payment gadgets like rings, bracelets, and watches to bring up new possibilities and innovations.
- Businesses embrace digital first world- Effective use of technology can be a differentiator for SMB’s. More and more businesses are looking to make their current processes more efficient. During the time of change growing businesses are making investment in new innovative technologies . This shift will enable them to serve their customers safely, achieving higher productivity and stay competitive.
Pandemic has brought a tectonic shift to how businesses are run. Three quarters SMB’s leaders feel that operational shifts induced by the pandemic will be beneficial in the long term. As businesses navigate the era defined by digitization, the ability to adopt and implement new innovative technologies will be critical to their success.
Written By Mrigesh Parashar, Chief Product Officer & Co-Founder, Trillbit Inc