Contactless payments are taking over Europe

The future of payment in Europe is contactless, a new survey suggests.

According to the report by digital security firm Gemalto, 90 per cent of business leaders in Europe have already invested in a contactless project. The other 10 per cent are planning to do so.

Gemalto also says that in the next three years, 10 per cent of all transactions in Europe will be made through contactless payment systems.

Things will not be as straightforward, though, as there are multiple contacltess payment systems, all battling for dominance. Contactless payment cards (52 per cent), mobile (50 per cent), wearable devices (43 per cent) and contactless store/loyalty cards are currently leading choices.

"This highlights that a combination of several form factors are needed to address different payments moments and consumer habits,“ the company said in a press release following the announcement.

Half of questioned businesses will outsource the deployment of the service to a trusted partner, while 12 per cent have said to outsource the entire process.

Looking at why businesses are opting for contactless payment, the results are pretty much expected, with image improvement and cost reduction being the main drivers.

Faster payment is on the number one spot for 74 per cent of respondents, followed by being seen to innovate (43 per cent), andd cost-effectiveness (42 per cent).

For 38 per cent, it makes them look as market leaders, and for 33 per cent it makes them look progressive in the eyes of their customers.

“Our survey indicates that businesses are going all in on investing in contactless which is reflective of today’s consumer demand for convenience, speed and choice. And this is only going to grow with new players and new form factors that offer innovative and convenient payment solutions, coming onto the market”,” said Howard Berg, Senior Vice President, Gemalto UK and Ireland.

“To get to a point in a few short years where businesses predict that 10% of all their payments being made via such a new channel, is remarkable. This is testament to the benefits that businesses are already experiencing in terms of operational efficiency and reputational advantage. Of course, given contactless’ relative immaturity, there are bound to be concerns to overcome, but this is where expert partners can help with security and integration expertise for businesses to take full advantage of all the benefits contactless offers.”

The full study can be found on this link.