Pub. 7 2018 Issue 3

The CommunityBanker 14 3-2-1... We Have Contactless! By Tina Giorgio I t often seems as though there’s a technology du jour in our indus- try. As fast as one solution takes center stage, a shiny, new option emerges, and all heads turn. This constant over-saturation can leave us struggling to separate the long-term standards from the fleeting fads. Let me cut through that clut- ter to disclose one trend that will live up to the hype: contactless payments. Contactless payments have evolved substantially since Mobil’s “Speedpass” hit the market back in the 90s. We’re no longer looking solely at Radio Frequency Identifi - cation (RFID) or Near Field Com- munication (NFC) enabled plastics. Today, contactless transactions include everything from flashing your watch at the point-of-sale to paying for your groceries, via your refrigerator. As “smart” devices get even smarter and more prevalent, payment has become part of their foundational fabric. That’s both good and bad for banks. On one hand, it means pay- ments become even more prevalent and seamless. On the other, it brings a whole new cautionary meaning to, “He who owns the payment keeps the customer.” From my perspective, there are three strategic reasons your bank should consider contactless payments. 1. Contactless pay- ments are exploding Worldwide, contactless pay- ments have soared in recent years. The UK Finance Council notes that, “in just a decade, contactless cards have gone from a niche offering to becoming the first-choice payment in all kinds of situations. One out of three card payments are contactless, and between January and June 2017, £23.23 billion ($30+ billion) was spent using contactless.” While con- tactless hasn’t taken off at similar F E A T U R E