The adoption of contactless payments has surged in recent years, transforming the way consumers and businesses handle transactions. What was once a niche payment method has now become the default for millions worldwide.

According to Mastercard, more than two-thirds of in-person transactions on its network are now contactless.

The rapid acceleration of tap-and-go payments has been driven by multiple factors, including the convenience of digital wallets, the widespread adoption of tap-to-ride systems in public transport, and the increased demand for touch-free payments during the COVID-19 pandemic.

"Contactless payments have become second nature for many consumers," Mastercard stated. "It’s a reflex that is shaping the future of digital payments."

Expanding contactless technology beyond checkout

Contactless technology is no longer limited to physical checkouts. Businesses are increasingly leveraging tap-based solutions to enhance customer experiences and streamline operations.

Mastercard’s Tap on Phone service, now available in over 110 markets, allows merchants to accept payments directly on their smartphones, eliminating the need for traditional point-of-sale hardware.

Retailers are also exploring new ways to integrate contactless transactions into their digital offerings.

Mastercard’s Tap to Add feature enables consumers to store their card details in mobile wallets with a simple tap, while Tap to Verify enhances security by confirming card possession during e-commerce transactions.

"These innovations help remove friction and improve security, making payments seamless across different channels," the company noted.

Future of contactless: beyond payments

The future of contactless technology extends beyond payments, with potential applications in identity verification and secure data exchange.

Mastercard’s Tap to Send or Receive function facilitates peer-to-peer transactions by allowing users to tap their cards or smartphones together, bypassing the need for account numbers or usernames.

Industry experts believe this is just the beginning. Mastercard’s tokenisation service, MDES, is already in use across 40 markets, supporting tap-based provisioning of cards and secure authentication.

The company is also trialling Tap to Pay solutions in regions like Brazil and Hong Kong. "The speed of contactless adoption is built on trust," Mastercard stated. "By turning taps into verified tokens, we can create a secure ecosystem for everything from payments to digital identity."

With contactless payments now an integral part of everyday transactions, businesses must stay ahead of the curve by adopting these innovations.

As technology continues to evolve, tap-based interactions could redefine not only commerce but also the broader digital landscape.