Unlocking the Full Potential: The Future of Contactless Payments in the United States

You must remember the first cards if you were born and grew up in the 1990s or 2000s. They used a magnetic strip and needed to be inserted into a payment machine, dragged, and read. Afterward, the cashier checked the handwritten signature, finally approving the payment.

Chip cards became more popular in 2010. To use one, you inserted it into the payment device and entered your associated password, and that was it — your purchase was approved.

However, tap-to-pay technology is already one of the most functional and common. This began when Visa issued the first cards with contactless technology in 2018.

This use has become even more popular with the COVID-19 pandemic, given the need to maintain sanitary barriers to contain viruses.

In practice, credit cards have gained immense popularity worldwide in 30 years. Still, it is time to rethink their functionalities and, above all, explore new opportunities for innovation in technologies applied to even more efficient operations.

Unlocking Efficiency: The Rise and Popularity of Tap-to-Pay Technology

Imagine the following situation: you have an appointment, but things start going wrong. The elevator does not work, and then you miss that bus that would have made you arrive on time. So, you decide to take the subway but realize you need money to buy a ticket.

But you have your credit card, which has tap-to-pay technology. Simply bring it closer to the terminal to have the turnstile released so you can quickly reach your destination safely and comfortably without any other worries.

Now, imagine that your card does not have tap-to-pay technology. You must enter it at the POS and enter your security password, which may take a few seconds. And, until the turnstile is released, you have also missed the subway, which would allow you to arrive at your appointment on time.

Tap-to-pay technology began to be massively adopted in the United States precisely because of its practicality and desirable user experience for the user, who does not want to waste time on absolutely anything, and certainly much less when trying to make a payment.

Unlocking the Future: A Glimpse into Contactless Payment Innovations

Many thought that tap-to-pay technology would continue as a card feature without its use becoming massive. However, practicality soon took shape, and this payment method is today one of the most used worldwide.

But what can we expect from the future of contactless payments?

Indeed, integration with cell phones will be increasingly immersive. With this, tap-to-phone will be an increasingly tangible reality, in which the seller's phone will begin to accept payments simply by approaching the card or another payment mechanism — such as wearable devices.

In the United States, contactless cards are already massively produced, mainly due to the needs of the consumer market.

Today, in some cities, the caliper can only be paid with proximity devices and various automatic vending machines, as there is no more extended space for card insertion and magnetic reading.

It is natural, then, that both the technologies that make the use of tap-to-pay cards mandatory and new market trends and payment systems start to require more incredible innovations, prioritizing zero contact whenever possible.

Addressing Contactless Payment Challenges: Innovating Solutions for the Future

For those who sell, having only one mechanism to receive payments can be one of the biggest bottlenecks in customer service. Because of this, despite significant innovations in the technology market to solve financial problems, different payment methods are still necessary.

However, this type of investment is only sometimes positive, mainly because it generates expenses for companies that could be applied to demands with more positive operational effects.

Another issue concerning merchants and users of contactless payment technologies is the insecurity that this mechanism can often cause. If the card is stolen or lost, it will be easy to make any payment, diverting financial resources from the victim.

The inconvenience of arranging tip payments can also be a problem, especially for those who have already dispensed using cash.

Embracing the Future: Closer Than We Think – Biological Integrations

As new technologies are developed and reach the market, what could have been scandalous a while ago becomes a new trend. Over time, we can use small chips under the skin differently, including contactless payment systems.

Even though we are still far from the comprehensive integration of this type of solution, we are undeniably getting closer and closer to it, disruption by disruption.

Another way to guarantee a slightly less invasive future that is still equally integrated with our bodies is to massify facial recognition or even biometric technologies.

With this, we will have new ways of paying for our consumption and, above all, new ways of transforming this most bureaucratic part of our lives into simpler moments, using our bodies to make our most basic financial activities even more accessible.

Thanking good service with a financial reward is good practice in most everyday situations. But how do you do this when the priority payment system eliminates any contact with any device?

Finally, another point is that this technology will always require a smartphone or wearable device. As a result, accessing mechanisms to expand this form of payment may also be complicated.

However, some innovations have already appeared on the market, questioning the idea that we necessarily need to have a cell phone or wear a device.

Some companies, like Apple, already use iris recognition in their systems. Other services, such as some cryptocurrencies, are also already associated with the image of the iris.

Scholars say that shortly, it will be possible to make payments connected directly to our credit cards only by accessing the image of the ocular iris. Only the future will tell whether this is true or not.

Other rumors and studies that also arise in this regard include the possibility of implanting a subcutaneous chip. Again, is this a conspiracy theory or the near future? Let's wait and see what happens. 

Until then, we can still count on contactless payment systems, which make our daily routine much more accessible.