Contactless payment transactions continue to grow
According to a study by Cantaloupe and Michigan State University, many consumers prefer contactless payment to cash transactions.
A study by Cantaloupe and the Broad College of Business at Michigan State University found that contactless transactions at ATMs have skyrocketed during the COVID-19 pandemic compared to cash payments. The data collected for the study analyzed a sample set of 160,000 Cantaloupe ePort cashless devices across various geographic segments.
The “Payments in Unattended Retail” study saw the overall share of cashless transactions increase significantly, from 51% in January 2020 to 62% in October 2021, compared to cash transactions, which increased from 49% to 38 % over the same period.
The increase in cashless payments overall is driven by consumer adoption of contactless payments, or any payment method that uses near field communication (NFC) or radio frequency identification technology ( RFID) for “tap to pay” – like a chip-enabled credit or debit card or mobile wallet. The study found that from January 2020 to October 2021, contactless transactions increased steadily month-over-month, from 18% of total transactions to 43% of total cashless transactions.
“When we analyze our entire network of devices in the first half of 2022, we find that contactless payment methods account for nearly half of all cashless transactions,” said Sean Feeney, CEO of Cantaloupe. . “And these trends are not slowing down. Data indicates that by the end of 2022, more than two-thirds of all transactions will be cashless, driven by on-tap consumers. For vending machine operators, this highlights the importance of offering contactless payment options if they want to increase revenue and stay competitive. »
Cantaloupe purchase data from January to November 2021 also showed an increase in EMV (Europay, Mastercard and Visa) digital payments from 1 million transactions to 3 million. Cantaloupe forecasts the number of EMV transactions to increase by an additional 2 million in 2022, reflecting the impact of EMV security changes by payment processors and card brand issuers. Vending machine operators should be aware of the revenue risks if their card readers are not EMV compliant.
Cantaloupe was founded in 1992 with the goal of providing cashless acceptance to the traditionally cash-based vending machine market, and the company continues to be a leader in the unattended retail industry. This research reflects observed consumer payment trends towards cashless payments when customers pay in person, driven by increased adoption of contactless payment methods such as smart cards or mobile wallets. Based on the data, the study predicts that contactless payments will grow another 31% in 2022.