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Contactless payment customers increased

Since the beginning of the Covid 19 pandemic, 19% of Colombians have used contactless payments, to it follows from a Mastercard study. This was reported by Colombia Fintech on May 2nd.

The published article, signed by Laura Neira Marciales, pointed this out The digital transformation was promoted not only in companies but also in people’s daily lives during the quarantine. Therefore, citizens have looked for new ways to buy and pay, trying to avoid physical contact and the possible contagion of covid-19.

Federico Martínez, CEO of Mastercard, said that this study, which looked at behavior between February and March, also showed that “people are increasingly using this technology. In Latin America, 71% of respondents say they use contactless payments for Covid-19, and 78% in Colombia. “

Contactless payment customers increased
Contactless payment customers increased

On the other hand, he made it clear: “There is still a lot of misinformation about contactless payments, as 12% of Colombians don’t know whether their debit or credit card has this function, and 41% have a plastic that doesn’t allow them to make these payments and they want to have the function. “

In this scenario, Erick Rincón, President of Colombia Fintech, said: “This is the time to develop not only contactless payments, but also virtual wallets and electronic wallets as there is a greater need to immaterialize the cash flow and water resources.”

For Rincón, these products improve the hygienic conditions when using money, since it is not necessary to develop money or paper, but to do it electronically. In addition, the costs associated with these operations would decrease due to the need to place the money.

Hygiene was also the key to the increasing use of contactless payments. With that in mind, Martínez said that 69% of Colombians are more aware of the mess of cash and 93% say this is the cleanest (contactless) form of payment. Added to this is people’s trust, as 79% believe that it creates more trust in their transactions.

Decrease in cash

As a result of the previously described The use of cash in Latam and especially in Colombia has been reduced. The results of the study show that 66% in Latin America no longer use it or use it to a lesser extent and reach 62% in Colombia.

Payment target

The Mastercard study showed that people use the contactless payment method to pay in supermarkets (88%) and pharmacies (47%), followed by restaurants (28%) and transportation (15%).

Unbanked

However, there is still a big challenge, and that is the existence of non-bankers and resistance to new payment models.

Marcelo Fondacaro, COO of VeriTran in Argentina, said: “A study conducted by Minsait found that 25.7% of Colombians do not use electronic means of payment to cover their monthly expenses.” And he added that “strategies must be implemented that promote the use of mobile applications to perform all financial operations without leaving home. It’s currently a matter of survival.”

In view of this, Martínez said that there was A challenge for older adults: “Although efforts are being made to provide assistance through digital mechanisms or bank accounts, once they are received they go to the ATM to take everything out.” However, he warned that financial education could improve this.

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