Impact of COVID-19 on the Global Contactless Smart Card Market
The COVID-19 pandemic originated in China and has spread across various countries of the world. The novel coronavirus has drastically affected human health and the global economy. The virus spreads when people come in close contact with a person having respiratory symptoms of COVID-19. Furthermore, the virus also spreads through physical contact, such as handshakes with infected people. Therefore, governments across the globe have imposed precautionary measures such as social distancing. Contactless payments are set to increase during the COVID-19 pandemic. They have become a preferred payment method across the globe as digital and contactless payment methods are more secure and require minimal physical interaction, which helps in containing the spread of the pandemic. The ongoing COVID-19 pandemic is aiding the growth of the contactless smart cards market owing to the increasing use of contactless payments, which are made from a safe distance, assuring the safety of both the payer and the payee during the payment process. Many consumers have started preferring contactless transactions during the pandemic. Businesses are allowing the customers to pay using contactless cards for delivery of the products at their doorstep, to safeguard their employees as well as the customers while also increasing sales during the COVID-19 pandemic.
Before the COVID-19 outbreak, the U.S. has lagged as compared to other countries in terms of contactless payment methods; however, the COVID-19 pandemic has changed the entire scenario. The spread of the virus has boosted the use of contactless payments in the country owing to the proliferation of contactless-capable, point-of-sale devices such as mobile wallets and contactless cards. Besides, in the U.K., where the contactless payment method is already widespread, the limits of contactless card payments have been raised to allow the customers to make more payments without making physical contact with the payment terminal or currency. Asia-Pacific held the largest market share owing to the increasing adoption of contactless smart cards in applications such as healthcare, retail, and BFSI. The banks in various countries have increased the transaction amount limits for contactless smart card payments to help contain the spread of the virus via PIN pads. Post-pandemic, the market is expected to witness significant growth over the forecast period.