Ringing up contactless payments at the World Cup

Ringing up contactless payments at the World Cup

While mobile payments made with one’s smartphone and other forms of contactless payments, such as transactions completed with watches, necklaces and rings, may not be blazing the payment trail in the US, it’s a very different story outside the US. A great example of the Cashless Consumption aspect of our Digital Lifestyle investing theme and index is being played out (pun intended) at the World Cup as event goers use digital payments both in and out of the stadiums.

It’s a great reminder to avoid one of the traps US investors tend to fall into — failing to look outside the US for investing data points. Even Digital Lifestyle index constituent Visa acknowldges a global view is needed to properly assess the adoption of contactless payments.

Soccer is a contact sport, but fans are using contactless payments at one of the sport’s most famous events: Approximately 17 percent of purchases with Visa in the World Cup’s 11 Russian host cities, for example, used contactless payment technology with devices such as smartphones, bracelets and rings. However, the share of contactless payments inside the stadiums hit 54 percent — made by fans from Russia and other countries.

Beyond the World Cup, Visa CEO Alfred Kelly said at a conference in May that his company continues to make progress with its efforts in contactless payments, saying that, beyond the lack of progress in the United States, “we’ve seen really good progress around the world.” He noted that, a year ago, one out of every eight global transactions processed by the company was contactless, moving up to one in five last quarter.

Source: Contactless Takes The Prize At The World Cup | PYMNTS.com

Visa & Mastercard mandating contactless payment terminals

Visa & Mastercard mandating contactless payment terminals

New technology adoption can be driven, primarily, by two forces – bubbling up based on consumer demand or pushed down due to a mandate from companies or the government. With contactless payments, we’ve seen consumer uptake grow as mobile payments, like Apple Pay, have come to smartphones and wearables. Now Mastercard  (MA) and Visa (V) are mandating payment terminals to include contactless payments by 2020. This should deliver a pronounced step up in contactless payments, but it also means an upgrade wave coming to payment terminals from Verifone (PAY), First Data (FDC), Ingenico and others.

Apple Pay should get a major lift within the next five years from a pair of factors, according to new research, most notably contactless support demanded by credit card giants Visa and Mastercard.

By 2020, both companies will require payment terminals in many markets to offer the technology, Juniper Research noted. The lack of compatible sales terminals has been a consistent obstacle in U.S. Apple Pay adoption, such that some retailers —like Anthropologie —have promised support for years without delivering.

Growth may also be aided by shoppers wanting to avoid the slower speeds of chip card transactions, which are presently replacing magnetic swipes.

U.S. contactless payments at retail are forecast to rise from 2 percent this year to 34 percent by 2022, Juniper said. Globally, figures are predicted to rise from 15 percent to 53 percent, reflecting the technology’s greater popularity in countries like Poland, Japan, and the U.K.

Source: Apple Pay likely to get boost from Visa & Mastercard mandating contactless payment terminals