Contactless payments via apps have become established in retail. Driven by global financial digitalization and Near Field Communication (NFC) technology, the method has become a preference among consumers seeking speed, convenience, and security in their financial transactions. Companies in the financial sector and retailers also see the change as an opportunity to improve customer experience and expand their digital strategies.
The global digital payments market is projected to reach USD 14.8 trillion by 2027, according to Statista. In Brazil, this growth is fueled by innovations like Pix, which already accounts for over 30% of banking transactions in the country, and digital wallets like Apple Pay, Google Pay, and Samsung Pay, which enable contactless payments without the need for physical cards.
“Contactless payments represent a revolution in how we handle money. Besides offering more convenience, they ensure greater security by avoiding physical contact with card readers and the exposure of sensitive card data,” explains Rafael Franco, CEO of Alphacode, a company specialized in financial app development.
The impact on retail and consumer experience
The adoption of digital payments in retail has been growing rapidly. Supermarket chains, restaurants, and large department stores already offer the option as a standard payment method, reducing queues and making transactions faster. Additionally, delivery and urban mobility apps have integrated contactless payments into their platforms, further simplifying the purchasing process.
For retailers, adopting this model also brings operational benefits. Studies indicate that digital payments reduce costs related to fraud and chargebacks while increasing 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 digitization of payment methods is not just a trend but a structural transformation of the market. Companies offering this integrated and seamless experience achieve higher customer engagement and create monetization opportunities,” highlights Franco.
Security and challenges of digitalization
Security is one of the pillars of contactless payment adoption. Digital wallets use biometric authentication, advanced encryption, and tokenization to protect user data. However, the advancement of digitalization also presents challenges for businesses, such as the need for constant cybersecurity updates and the adaptation of less tech-savvy consumers.
Another challenge lies in digital inclusion. Despite significant growth, many people still lack access to NFC-compatible smartphones or face difficulties using digital banking services. “The mass adoption of contactless payments requires a joint effort between companies, governments, and financial institutions to democratize access to technology and ensure more people can benefit from this advancement,” says Franco.
The future of digital payments
The evolution of contactless payments will continue to accelerate in the coming years, with new technologies and integrations making the user experience even smoother. Trends like Tap to Pay, which allows turning smartphones into payment terminals, and the adoption of proximity-based Pix indicate the sector will keep innovating.
The combination of security, convenience, and speed is solidifying digital payments as the new norm in retail and consumers’ daily lives. For businesses, adopting this technology represents an essential competitive advantage in the era of financial digitalization.
