Contactless payments are the new fashion. It is being used by many for payments at different shops and even online.
The biggest gainer of such a revolution in India is UPI. But the cards are not far behind.
In recent times, cards have also become contactless. In this case, they are used to making payments without swapping. Such a card uses a microprocessor to make payments to the contactless system-enabled payment device.
Now, you also have the feature to store your card in your UPI account and make payments cashless and contactless. It also allows the credit card system to merge with UPI. This hybrid system is also being adopted rapidly.
Based on market research, contactless payments grew in India from 2.5% to 16.1 % in the last four years. This info is based upon the market data collected by Visa Inc.
On the other hand, the number of payments by using QR codes and Dynamic QR codes has increased by 231%. The UPI payments have seen a jump of 300% in the last year. The contactless card payment or NFC-enabled card payment has also increased by 90 %.
This jump is also associated with the major banks in our country. As more customers are demanding such features. So, banks are promoting contactless cards even more.
RBI also helped in this aspect by increasing the limit of contactless payment from 2000 rupees to 5000 rupees per transaction from January month of 2021.
Various promotional offers and other benefits are also attracting more users for such an experience.
The users in major cities of India, Like Delhi, Mumbai, Bangalore, and Hyderabad are using such features the most in the country.
All of these are helping in increasing the share of contactless payments in India. These methods are more in use at gas stations due to the long queue at such places. The implementation of technologies like FastTag is also promoting such initiatives. Now it is also helping in reducing the long queues at toll booths on national highways.
On the international stage, countries like Singapore already have 70 to 80% of people using contactless and cashless payments.
In the future, these modes of payment are going to get more popular. As people are starting to realize the potential benefits of such systems, they are using such methods more. So, these systems and methods will keep on growing in the coming years in India.
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