Retail financial digitization brings accelerated growth with contactless payments via banking apps 

Contactless payments via applications have consolidated in retail. Driven by global financial digitization and Near Field Communication (NFC) technology, the method has become a preference among consumers seeking agility, practicality and security in their financial transactions. Financial companies and retailers also see the change as an opportunity to improve the customer experience and expand their digital strategies.

The global digital payments market is expected to reach US$ 14.8 trillion by 2027, according to Statista projections. And in Brazil, this growth is driven by innovations such as Pix, which already accounts for more than 30% of banking transactions in the country, and by digital wallets such as Apple Pay, Google Pay and Samsung Pay, which allow payment by approximation without the need for physical cards.

“Contactless payments represent a revolution in the way we handle money.In addition to offering more convenience, they ensure greater security by avoiding physical contact with machines and the exposure of sensitive data on the” card, he explains Rafael Franco's, CEO of Alphacode, company specialized in the development of financial applications.

The impact on retail and the consumer experience

The adhesion to digital payment in retail has been growing rapidly. Networks of supermarkets, restaurants and large department stores already offer the option as a payment standard, reducing queues and making transactions faster.In addition, delivery applications and urban mobility integrated payments by approach to their platforms, further facilitating the purchase process.

For retailers, adopting this model also generates operational benefits. Studies indicate that digital payments reduce costs with fraud and chargebacks, in addition to promoting greater customer loyalty. According to a McKinsey survey, consumers who use digital wallets spend, on average, 30% more than those who pay with cash or traditional cards.

“The digitalization of payment methods is not only a trend, but a structural transformation of the market. Companies that offer this integrated and fluid experience gain greater customer engagement and create opportunities for monetization”, says Franco.

Security and challenges of digitalization

Security is one of the pillars of the adoption of contactless payments. Digital wallets use biometric authentication, advanced encryption and tokenization to protect user data.However, the advancement of digitalization also poses challenges to companies, such as the need for constant updates in cybersecurity and the adaptation of consumers less familiar with new technologies.

Despite the significant growth, many people still do not have access to NFC-compatible smartphones or face difficulties using digital banking services. “The massification of contactless payments is a joint effort between companies, governments and financial institutions to democratize access to technology and ensure that more people can enjoy the benefits of this” advancement, says Franco.

The future of digital payments

The evolution of contactless payments is expected to continue accelerated in the coming years, with new technologies and integrations that will make the user experience even more fluid Tap to Pay, which allows you to turn smartphones into payment machines, and the adoption of Pix by approximation indicate that the industry will continue to innovate.

The combination of security, convenience and speed is consolidating digital payments as the new norm in retail and consumer daily life.For businesses, the adoption of this technology represents an essential competitive differentiator in the era of financial digitization.