This archive report was first published on 6 May 2020.
COVID-19 Drives Contactless Payment Adoption ¶
Published on May 6, 2020, a study by Mastercard revealed that consumers in Africa are making a significant shift towards contactless payments for everyday purchases, driven by concerns over cleanliness and safety amidst the COVID-19 pandemic.
According to the study, six in ten (61%) respondents in the Middle East and Africa have swapped out their top-of-wallet card for one that offers contactless payment, with 70% of respondents saying they are now using some form of contactless payment.
Adam Jones, Area Business Head, East Africa, noted that social distancing measures have led to a heightened sensitivity to personal contact, with consumers adopting contactless payments as part of their new 'no-contact' behavior.
Mastercard's data shows that contactless transactions grew by 40% globally in the first quarter of 2020, with 80% of contactless transactions being under $25. The firm has also committed to increasing contactless payment limits in over 50 countries worldwide.
Local banks, such as KCB Bank, Equity Bank, and DTB, have also enabled contactless transactions on their Mastercard debit and credit cards, with DTB's Farouk Khimji noting that the bank has educated consumers on the ease and benefits of executing contactless transactions.
Equity Bank's Gerald Warui added that the bank has activated all its 21,000 Point of Sale machines to accept contactless payments, enabling a faster checkout process.
As the pandemic continues to spread, it remains to be seen whether this shift towards contactless payments will be a lasting change in consumer behavior.
