Mastercard is seeing its volume slide but interest in contactless rise amid the pandemic - Business Insider

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The pandemic is driving contactless adoption for Mastercard, potentially setting it up to recover some volume in the future

in certain markets, consumers may be wary of making purchases at these stores, especially if they know they'll need to directly interact with a cashier or point-of-sale terminal. But rising contactless adoption gives more consumers a way to make in-store payments that avoid those issues, potentially leading consumers to return to spending in-store faster, helping card networks' volumes rebound.

The pandemic's influence could lead to a long-term preference for contactless payments in the US, which has been relatively slow to adopt the payment method. Just 51% of US respondents are now using contactless payments, per data from Mastercard sent to Business Insider Intelligence. That's well behind the 79% of global consumers doing so, but may still mean US consumers are more interested in contactless payments than they were .

This could be especially true now that consumers will be exposed to contactless payments' other benefits, like speed, leading to a more permanent behavioral change, Linda Kirkpatrick, President, US Issuers at Mastercard, told Business Insider Intelligence.Business Insider Intelligence analyzes the payments and commerce industry and provides in-depth analyst reports, proprietary forecasts, customizable charts, and more.

 

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