Evolving technology has always been present in payments, from IBM’s® development of the magnetic stripe in 1960 to the original introduction of EMV® chip-and-pin in 1994.

Over the past decade, technological advances have launched a revolution in payments, from digital wallets to contactless wearables and payment objects.  While the U.S. has been slow to adopt contactless payments, the international market has been full-speed ahead for over a decade.

Outside the U.S., more than 40 percent of in-store Visa transactions occur with a tap, with Europe and Canada leading the way. In the UK, 76 percent of millennials made a purchase with their contactless card in 2017. Meanwhile, in Canada, nearly 70 percent of all transactions under $50 occur with a tap.

Although the U.S. still lags with an estimated three percent of cards featuring contactless capabilities, a majority of point-of-sale terminals in the U.S. are already set up to accept contactless payments, a benefit of merchants’ recent conversion to EMV-enabled devices to protect against fraud loss liability. Issuers are catching on, and Visa expects over 100 million Visa contactless and dual interface cards to be issued in the U.S. by the end of 2019.

A World of Contactless Benefits Awaits
Dual interface cards with contactless payment functionality offer merchants, issuers and cardholders a range of attractive benefits:

With the benefits of speed and convenience, contactless offers a ‘must have’ value proposition to consumers and issuers. The contactless trend is here and it’s a prime time for issuers to support the transition by offering dual interface cards.

For more information about issuing dual interface contactless cards, contact CPI Card Group today or click here.

 

IBM is a registered trademark of International Business Machines Corp.

Jack Jania

Written by: Jack Jania, VP of Product Management and Innovation for Secure Cards at CPI Card Group.