Pub. 7 2018 Issue 3

15 F a l l | 2018 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. pace in the United States, new reports indicate we may be on the verge of a contactless payments revolution. According to ABI Research, contactless card shipments, which numbered 25.7 million in 2016, are expected to balloon to 229.6 million in 2021, and Visa projects 50 percent of face-to- face transactions will occur at contactless-enabled merchant locations in the U.S. by the end of the year. Already, major retailers like Starbucks and Walgreens have instituted the technology and have begun driving usage. So, now’s a good time to explore your contactless options. Community banks engaging today will be in the perfect spot to start driving adoption as the technology becomes more widespread. 2. You can’t get much more “frictionless” The “Amazon-ification” of the world has led consumers and businesses to expect simple, seamless payments. They also want choice. Contactless payments offer both. With contactless options, customers can select how they want to pay, how that information is stored (i.e., digital wal- let, in-store app, physical wallet, etc.), and when they want to use it. It’s also quick at the point-of-sale and simplifies the purchase process, making for a better, faster, smarter customer experience. Keeping this in mind, community banks can leverage contactless payments as another way to meet their consumers evolving needs. 3. Timing is right for a strategic switch In addition to the market-driven reasons to explore con- tactless, there’s an internal driver: the expiration of the first EMV chip cards. With those first cards pushing up against re-issue dates, many large issuers are strategically replacing them with NFC plastics. If you’re considering making a switch to contactless, EMV card replacement may help you to tie strategic priorities to operational requirements: You are able to reissue the expir- ing chip card and introduce the contactless technology at the same time. Global market trends give us a glimpse into our contact- less future, and this technology is here to stay. Contactless is a channel to consider as you evaluate your community bank’s payments strategy and technology investments. With roots firmly planted since the 1990s, contactless has revealed itself to be a long-term player, worthy of all community banks’ near- term consideration and deployment. Tina Giorgio is President and CEO of ICBA Bancard. coastal-capital.com A fully customized turnkey solution to better serve your customers, communities, and stakeholders. Visit our website to find out how we can help. Customized, Empathetic Financial and Retirement Planning For Community Banks and Their Customers F E A T U R E