A recent survey by MasterCard shows that a significant majority of people in the Middle East and Africa have turned to contactless payments when making purchases for fear of contracting COVID-19 from ‘infected’ currency notes.
70 percent of respondents in the Middle East and Africa affirm that they are now using some form of contactless payment, citing safety and cleanliness as key drivers. In a sustained period where consumers are more concerned about their health, the survey found out that six in 10 respondents preferred contactless means of settling payments and 81 percent affirmed that they will continue to use contactless payment methods, post-pandemic.
Subsequently, there has been a major shift from cash payment irrespective of payment size. East Africa Business Head at Mastercard Adam Jones stated that “social distancing does not just concern people, it includes publicly shared devices like point of sale terminals and checkout counters.” Jones added that “at a time of heightened sensitivity to personal contact, consumers are adopting contactless payment methods as part of their new ‘no-contact’ behavior.”
The global COVID-19 disruption has led to increased concern from consumers on cash usage and created a positive perception of transactions that do not require contact. Contactless payment is a secure method for customers to purchase goods and services using a debit or credit card, key fobs, smart cards, smartphones, and other mobile devices which has a radio-frequency identification (RFID) technology or near-field communication. In using such a system to make instant transactions, a consumer taps the payment card or device near a point-of-sale terminal equipped with the ‘contactless-enabled” technology.
Another study by MasterCard revealed that since the beginning of COVID-19 in South Africa, 89 percent of South African respondents have been using contactless methods to pay for groceries, 60 percent for pharmaceutical items, 39 percent for other retail items, 15 percent for fast food, and eight percent for transport.
Mark Elliott, Divison, President South African MasterCard stated: “South African shoppers are increasingly recognizing contactless as a safer, cleaner, and faster way to pay, especially as they seek out ways to quickly get in and out of stores without touching terminals or handing over their card.” Reinforcing changing behaviors among consumers in South Africa, Mastercard postulates that the number of contactless payments as a proportion of all face-to-face payments in South Africa as of March 2020 is 10 times higher than it was the previous year.
The Managing Director of Equity […]