FNB has announced that contactless payments have surpassed chip and PIN contact payments for the first time.
The bank attributes the shift from chip contact to contactless to consumers’ preferences and awareness of 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,” said FNB payments executive Raj Makanjee. “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.”
In March and April this year, customers processed over 30 million contactless payments, worth over R10 billion in each month, according to Chris Labuschagne, chief executive of FNB Card.
“Over the last 12 months, we’ve seen year on year growth which ranged from 200 percent on regular months and over 400 percent during peak periods,” said Labuschagne. “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.”
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, FNB sees better growth prospects in consumer usage and adoption.
“We remain committed to providing a wide range of unique and innovative payment solutions that are centred around true customer and business value,” Labuschagne concluded.