Contactless payments, like Apple Pay are on the rise as more smartphones are NFC equipped. However, adoption is still slow amongst consumers. Ultimately, for now, real wallets are favored amongst consumers over digital wallets, but that trend is slowly shifting, with thought leaders like Deloitte expecting a 10x increase in smartphones used for contactless payments from 2014 to 2015.
As contactless payments rise, here are the 3 main factors driving retailers to adapt the new technology and eventually help drive consumer adoption.
- Higher Speed: Contactless payments are faster and easier. They expedite check out, relieving a massive pain point for retailers and saving consumers time.
- Premium Technology Means Premium Consumers: Apple Pay, and contactless payment apps like it require an Apple device, or in other cases a smartphone, which is still considered a premium product. Attracting consumers with higher income profiles opens the retail opportunity for additional, higher priced add on purchases and increased Average Order Value.
- Personalized Consumer Experiences: More consumer data means a more personalized consumer experience. The more personalized the experience the stronger the retailer relationship becomes.
Contactless payments do represent a mutual opportunity to streamline the retail process. The slow adoption is to be expected since it means total disruption to a market and process that is decades old. However, consumers and retailers are adapting and the market on both ends needs to be ready.
