TOUCHLESS PAYMENTS: WHAT COMES NEXT?

Touchless payments have grown enormously since the COVID pandemic as consumers seek safer, more convenient checkout options. Various emerging technologies from mobile wallets to biometrics and retail tech innovations will drive massive touchless adoption over the next decade.

Already, 82% of customers use touchless options and 97% plan to continue even post-pandemic according to Visa. The global touchless payments market is predicted to grow from $4.6 billion today to over $15 billion by 2027. Investments and partnerships between fintech startups, payment networks and banks continue rising too.

Smartphones enabled with NFC are transforming into virtual wallets for tap-based transactions across retail locations and transit systems. But soon supporting technologies embedded directly onto payment cards, keychains, car dashboards and other everyday items will enable touchless transactions across countless scenarios without mobile devices too.

Innovations are also allowing touchless commerce directly from consumers’ owned screens as connected devices proliferate. For example, QR code payments are gaining traction, allowing transactions from live-streamed videos and social posts. Similarly, in-vehicle infotainment screens will enable frictionless drive-through purchases.

Biometrics identification including fingerprint, facial and iris recognition is also being integrated into payment platforms, with 95% of smartphones incorporating biometrics by 2025 per Deloitte forecasts. This enables users to securely authenticate transactions using personal physical identifiers without passwords or PINs.

Ultimately the greatest touchless enabler will be ambient computing infrastructure embedded directly into public environments. Advanced sensors, computer vision, connectivity infrastructure and artificial intelligence able to process contextual signals will facilitate seamless recognition-based transactions. This could mean stores automatically charging known customers by detecting their presence or mass transit deducting fares based on trip distance monitored via sensors.

By eliminating authentication friction, improving hygiene and enhancing experiential convenience, touchless payments are primed for ubiquitous adoption over the next decade via smartphones and surrounding infrastructure advancements. Soon nearly every environment will enable seamless, invisible transactions based on recognized identity or activity cues.