Contactless payments via apps have become established in retail. Driven by global financial digitization and Near Field Communication (NFC) technology, the method has become the preferred choice among consumers seeking speed, convenience, and security in their financial transactions. Financial sector 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 $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 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 the way we handle money. In addition to offering more convenience, they ensure greater security by avoiding physical contact with card machines and the exposure of sensitive card data,” he explains.Rafael Franco, CEO yesAlphacode, a company specialized in the development of financial applications.
The impact on retail and consumer experience
The adoption of digital payment in retail is growing at an accelerated pace. Supermarket chains, restaurants, and large department stores already offer the option as a standard payment method, reducing queues and making transactions faster. Furthermore, delivery and urban mobility apps integrated contactless payments into their platforms, further simplifying the purchasing process.
For retailers, adopting this model also yields operational benefits. Studies indicate that digital payments reduce costs associated with fraud and chargebacks, as well as promote 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 just a trend, but a structural transformation of the market. Companies that offer this integrated and fluid experience achieve greater 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 poses challenges for companies, such as the need for constant updates in cybersecurity and the adaptation of consumers less familiar with new technologies.
Another challenge is digital inclusion. Despite the significant growth, many people still do not have access to smartphones compatible with NFC technology or face difficulties in using digital banking services. "The mass adoption of contactless payments involves 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 accelerating in the coming years, with new technologies and integrations that will make the user experience even smoother. Trends like theTap to Pay, which allows smartphones to be transformed into payment machines, and the adoption of Pix by proximity indicate that the sector will continue to innovate.
The combination of security, convenience, and speed is establishing digital payments as the new standard in retail and consumers' daily lives. For companies, adopting this technology represents an essential competitive advantage in the digitalization era.
