Despite several digital wallets and credits cards available in the Philippines, Filipinos still tend to use cash as the mode of payment and have been slow to adapt to contactless payments. With the Coronavirus making everyone paranoid and more aware of cleanliness we expect to see Filipinos move more to cashless and online transactions.
What is a contactless transaction?
A contactless transaction is when you purchase something with either a credit card, debit card or a digital/mobile wallet without swiping but just by tapping your card or phone. In fact you may not even need to really tap it to the card reader and holding it close to it can already complete the transaction. This is contactless technology.
How do I know if my card has contactless technology?
Not all credit cards have this feature. In 2018 only 3% of US credit cards had them, but that percentage has jumped to 41% this year with many countries following suit of the increase in contactless cards.
To know if your card has the ability for contactless payments just look for the wifi symbol placed sideways on your card. For Visa cards they call this the PayWave feature and Mastercard calls this the PayPass feature. They are basically the same though.
Related: The New GrabPay Credit Card
Contactless payments with digital wallets
By now you've probably heard of GCash or GrabPay. These are examples of digital wallets or mobile wallets here in the Philippines and have garnered a lot of users especially in the younger generations. They store payment information in your account which you can easily access with your smartphone and make purchases with the balance in your E-wallet.
Increase in contactless transactions
As the Coronavirus continues to spread throughout the Philippines and the world, Filipinos and consumers have become more conscious on how they shop and pay. In the first quarter of the year alone Mastercard reported a 40% increase in contactless payments globally with that percentage expected to rise throughout the year.
Opting for contactless payments is also more secure as it uses a one time token to authenticate your card details. Swiping your card enables the terminal to collect card data from the card's magnetic strip.
Related: How to Clean Credit Cards
Bottom line
Contactless payment is now the "healthier" way to pay as we try to avoid getting all kinds of germs in the things we touch. Given that it's much safer, faster, and cleaner to go contactless, its a no brainer that more banks will continue to issue more contactless cards in the near future.
Also take note that a NFC or Near Field Communication terminal has to be used for contactless payments and older card reading terminals won't do.
Have you switched to contactless?
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