Does Convenience Cause Risk?

Thanks to technology, it has become far easier to make payments, but how safe are contactless payments and what are South Africans’ options?

Covid-19 has had a major impact on all spheres of our lives, and one of the spheres already influenced, is the way we buy and pay for goods. Whether you buy using a credit card, an app, a virtual card, or these days, even your watch, contactless payments have gained traction and are here to stay.

The “Visa Back to Business Study – 2021 Outlook” found that 65% of consumers now prefer contactless payments. Only 16% of consumers would prefer to return to the traditional way of paying, once the world has returned to normality with the help of vaccines, while 74% would still use contactless payments, and 47% don’t want to buy at shops that don’t have contactless payment options.

The difference in how people buy and pay was already evident in 2020 with several banks that released interesting figures at the time. Absa said as early as November 2020 that contactless payments had doubled since May that year, and Standard Bank’s figures showed a drop of 15% in cash transactions, while scanning platforms, such as SnapScan, showed an increase of 15%.

Clayton Hayward, CEO of Ukheshe Technologies, a fintech company, says the Covid-19 pandemic has not only changed spending habits, but revolutionised it.

“The Mastercard Economic Institute’s Economy 2021 report states that Covid-19 has permanently changed consumer spending habits. We have seen this in the growth within the fintech sector, the levels of disruption, and the many opportunities to finally address financial inclusion. It is all about digital platforms and how these can address these new and more demanding consumer needs. Thankfully, we were already on this course, Covid-19 just pushed us into fast-forward mode.”