U.S. Payments Forum Market Snapshot: Industry experiences rapid shift to new payment technologies, Fraudsters move online and EMV at the pump makes progress
PRINCETON JUNCTION, NJ (December 8, 2020) — The U.S. Payments Forum today released its latest Market Snapshot providing a look at the state of the industry, including the accelerated adoption of payment technologies in response to COVID-19, the ongoing transition to EMV® at the pump, trending industry topics, and current Forum priorities and projects.
State of the Market: Industry Sees Accelerated Implementation, Acceptance of Emerging Payment Technologies
COVID-19 has driven change in consumer preferences for shopping and checkout, and the industry has responded with accelerated adoption and implementation of new payment technologies in the U.S. During the November virtual U.S. Payments Forum member meeting, issuers reported significant growth in contactless usage, with some networks reporting a 200% year–over–year increase in contactless spend. With a mix in preference for using cards and mobile phones, more than half (51%) of Americans are now using contactless payment, according to a Mastercard survey.
QR codes have also seen traction as a touchless method for payment. Consumers are becoming more familiar with the technology as more retailers use it for paying at fuel pumps and for initiating check-ins and picking up orders. Some merchants are adopting QR code technology for in-store payments as well, as it can leverage card-on-file information for faster checkout.
While health has been a driver for this shift to touchless technologies, convenience is also a major catalyst for this broad adoption and demand is expected to continue. Mastercard reported that 74% of cardholders have indicated that they will continue to use contactless post-pandemic, and industry leaders are building their long-term strategies with this in mind. Responses to a recent American Express survey revealed that 7 out of 10 merchants report customers requesting contactless since the pandemic began, and 81% of those merchants intend to make contactless a permanent option.
The migration to chip at the pump is also still top of mind for the payments industry. According to the September 2020 Conexxus EMV Preparedness Survey, 14% of gas station owners said that all of their sites were already compliant. While 43% of smaller and independent gas stations with one to 10 sites have no EMV terminals installed yet, no survey respondents said they expected to have zero sites compliant by the liability shift date, April 2021. As it stands, 61% of owners plan to be 100% compliant by then. The Forum has provided resources for those making the transition to chip at the pump, which are available on its website.
Trending Topics: COVID Pushes Shoppers – and Fraudsters – to New Avenues
Retailers at the meeting reported dramatic
About U.S. Payments Forum
The U.S. Payments Forum is a cross-industry body that fosters open dialogue between industry stakeholders to enable efficient, timely and effective implementation of emerging and existing payment technologies through education, guidance and alternative paths to adoption. The Forum is the only non-profit organization whose membership includes the whole payments ecosystem, ensuring that all stakeholders have the opportunity to coordinate, cooperate on and have a voice in the future of the U.S. payments industry.