South African bank, FNB has revealed that contactless payments have surpassed Chip and PIN contact payments for the first time ever among its Credit, Debit, Fusion, and Virtual Card users.
The Bank attributes the behavioural shift (from chip contact to contactless) to consumer’s preference and awareness of safer, convenient, and quicker means to pay at a Point-of-Sale.
“This is a remarkable milestone for the financial services industry, and it augurs well for efforts to improve safety and convenience in the payments network,” says Raj Makanjee, Payments Executive at FNB.
“With over 10 million contactless cards in the hands of our customers and 200 000 Virtual Cards activated, we are delighted to see our customers pioneering what we believe to be the future of payments globally. It goes without saying that the pandemic has definitely accelerated the growth in contactless payments as consumers and retailers continue to prioritise safety, convenience and efficiency.”
According to FNB, the scope for growth in contactless payments remains vast and the bank is of the view that chip contact and contactless payments will continue to compete over the medium term. However, as more retailers roll out contactless Point-of-Sale devices for greater efficiency, the Bank sees better growth prospects in consumer usage and adoption.
“In March and April this year, our customers processed over 30 million contactless payments, worth over R10 billion in each month. Over the last 12 months, we’ve seen year on year growth which ranged from 200% on regular months and over 400% during peak periods,” says Chris Labuschagne, CEO of FNB Card.
“We firmly believe that new solutions like our Virtual Card on our digital platform will significantly accelerate this trend, supported by a willing customer base which continues to lead the market on the use of efficient financial services tools.”
“In addition to the virtual card payments option on the FNB App, customers also enjoy a wide range of convenient contactless payment alternatives such as Samsung Pay, Fitbit Pay and Garmin Pay, with additional new payment options to be made available soon.”
