For years, contactless payments have been on the rise, particularly with the outbreak of the pandemic and due to greater reliance on mobile devices. Analysts believe that Latin America will soon overtake the United States as the region with the most mobile wallet users. Credit and debit cards appeared to be totally supplanted by mobile wallets by 2020. In such a scenario, banks would lose a significant portion of their market share in retail transactions. However, new contactless card technologies, particularly near field communication (NFC) technology, arose to meet the challenge.
NFC allows smart gadgets to communicate wirelessly when they are touched or brought close together. NFC-enabled cards can be used to confirm a payment simply by holding them near a mobile phone, making it simple and painless for most sellers to accept bank payments via NFC at the moment of purchase.
Sellers in Latin America that want to stand out in 2023 will need to include contactless payments into their business strategies, whether through NFC or another technology.