Since its introduction, contactless technology has transformed spending habits across the world.
In July 2018, for example, just over half of card transactions (52%) were performed using this method in the UK.
As long as they are kept safe, these devices offer an easier, more straightforward way of pay for goods than the traditional chip and pin card. So, why is it that the largest economy in the world is only just beginning to embrace it?
Put simply, the U.S. card market is complicated. For any new technology to be introduced, retailers, big banks and card companies have to work in tandem.
And in a place as vast as America, this can be difficult. But fortunately, by the end of this year, contactless payments could become a regular occurrence for its citizens. But how will this influence the country?
Benefits for Banks
Anybody with a contactless card will attest how easy it is to overspend. All users have to do is tap, and a product becomes theirs. In Britain, 2017 saw citizens splashing out a collective £3.3 billion every month. And that’s despite a £30 usage limit on every purchase made.
Overspending could have a similar appeal in the U.S. – especially if, like in Australia and EU states like Germany – a card spending limit is not applied. Should America model its method on these countries, there would be a pin required for spending over a certain amount. But this won’t take away the appeal of excess spending.
Who could this possibly benefit, you ask? The banks, of course.
A Rise in Prepaid Financial Services
Shrewd investors could avoid the risks of contactless technology through secure and reliable prepaid financial services. This would offer a failsafe solution for business leaders looking to prevent save money through reducing company costs.
In addition, it would enable parents to limit what their children buy with cards for joint family accounts. And the best part is that most of these services give contactless payment options.
The introduction of contactless technology to the U.S. could make a positive impact by encouraging more people to keep their money safe through a trustworthy organization.
These cards can be used for saving as well as spending, therefore.
More Profit for Offline Vendors
America has seen a steep decline in offline businesses over the past few years. With the emergence of Amazon Go stores and the slump of Toys “R” Us, retail in the U.S. looks to be in peril.
But could contactless payments help the retail sector get back onto its feet? Whilst internet brands are growing faster than concreate stores, more of the average American shopping budget is still spent in person.
Given this, could the country see a rise in face-to-face financial transactions?
Families that regularly use this form of payment in-store – families on a budget, for example – could use prepaid cards that not only benefit them, but also the U.S. retail industry.
Contactless technology has the power to affect an economy massively. If American banks, companies and spenders know what to look out when it is fully introduced, they could reap huge financial benefits.
As a passionate gamer since the 1990s, Vadim has kept his passion alive since then, and he is here to cover video games news, as well as to share with you all the novelties out there regarding gadgets or games-related tech.