Pandemic Spurs Investment in Contactless Technology

Published: 7 August 2020 y., Friday

The global COVID-19 pandemic has a significant impact on both the habits of society and the banking sector. The World Health Organization recommended avoiding contact with surfaces in public places to decrease the spread of the virus. Banks increased the limit for contactless payments without the PIN.

The leading provider of strategic research in banking automation and payments RBR predicts that the COVID-19 pandemic will accelerate the growth of contactless payments. Last year, the number of contactless cards increased by 23% worldwide. In 2020, more than 40% of payment cards in the world support contactless payment.  Today the majority of cards issued in our region are contactless.

“Contactless transactions will become more popular in the future. We are talking about not only the contactless POS terminal but also about the contactless ATMs, postal, parking, and other vending machines. The entire infrastructure for client authentication will become contactless over time,” says Kornelijus Šišla, Head of Strategic Partnership at Penkių kontinentų bankinės technologijos (BS/2, which is part of Penki Kontinentai).

How does contactless technology work?

Near Field Communication (NFC) technology is using for contactless payments. It allows devices to exchange data within a radius of up to 10 centimetres. The close and fast connection ensures payment security.

NFC allows customer identification without inserting the card into a POS terminal, ATM, or other devices. This technology is using to get access to various objects (office, metro, etc.), log into a network, launch applications, and other systems.

According to Kornelijus Šišla, NFC could be implemented in smartphones, rings, smartwatches, and tickets. If your device supports NFC, you can use it to pay using POS terminals or ATMs. “Perhaps, in the future, plastic cards will go out of circulation, but contactless payment will remain,” says the expert.

The emergence of contactless ATMs

In the Caucasus region, the first contactless ATMs appeared six years ago in Georgian banks. The Lithuanian banking technology company BS/2 has been making a significant contribution to the introduction of this technology into a self-service banking channel.

In 2016, US credit institutions began to use contactless ATMs actively.

In the Baltic States, the first contactless ATMs appeared in Estonia in 2017 and a year later in Latvia. The coronavirus pandemic triggered the introduction of this technology in Lithuania this summer.

According to research, the number of contactless ATMs in 2019 increased by 83%. The COVID-19 threat will accelerate the widespread use of this technology, which has already begun.

Šaltinis: Penki kontinentai
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment

     

 


Captcha
 

BS/2 Georgia became Georgia's official fiscal data operator

BS/2 Georgia in cooperation with ASHBURN International offer payment terminals to the Georgian market, which perform fiscalization function, thus replacing cash registers. more »

Social initiative at the Penki kontinentai art galleries

On the last Friday of July, the social initiative "Mind, beauty, health - the beginning of our future" was held in the Penki kontinentai art galleries. more »

BS/2 continues cooperation with Halyk Bank

BS/2 has been cooperating with the largest bank in Kazakhstan for several years. more »

ASHBURN International enters the market of Western Europe

ASHBURN International has entered into a partnership agreement with DECTA. more »

Basics of ATM operation: training for JSICB “Ipak Yuli” employees took place in Uzbekistan

BS/2 experts conducted training for the employees of the department of automated points service and plastic cards issuing of JSICB “Ipak Yuli”. more »

Modern DN-series ATMs added to Victoriabank fleet

or the first time in Moldova, modern devices from Diebold Nixdorf DN-series appeared. more »

Improving knowledge of ATMs: training for Aloqabank employees was held in Uzbekistan

On May 28, the BS/2 experts conducted training for the ATM maintenance department of Aloqabank. more »

Intersect 2022: Discussion of banking trends and technological innovations in the industry

BS/2 experts take part in Intersect 2022 from June 13 to 15, 2022. more »

Results of PLUS-Forum “Banks and Retail. Digital Transformation and Interaction”: focus on innovation in the banking industry

On May 25-26, 2022, representatives of "Penki kontinentai Group" participated in the international PLUS‑Forum. more »

„The Power of Coffee“ gives you the power to feel meaningful

It is the third time in a row that the Penki kontinentai group participates in this initiative. more »