Visa: World Cup analysis shows world is going contactless
Cashless transaction giant Visa has conducted analysis into payments made during the recent FIFA Women’s World Cup, and the picture it paints is one that is sure to bolster ecommerce investors’ confidence. According to Visa, a majority (51% of all payments) of customers in the French host cities chose to use contactless payments over other alternatives. The methods they used to make these payments were varied: smartphones, wristbands and other wearables, and contactless cards.
Visa’s share price has risen by 35% so far this year
Source: Yahoo Finance
Visa said its analysis focused on the group stage of the international sporting event, which took place between June 7th and June 20th. The company said that its findings offer a strong indication of the growing popularity of contactless technology, which – despite now accounting for more-than half the payments made – is still only a few years old. What’s driving this rapid up-take? Almost certainly, the answer is simple convenience. Visa says it’s making this transition as easy as possible, and there were 1,600 upgraded point-of-sale terminals in World Cup stadiums designed to facilitate contactless payments.
But this is just part of the story. Visa said that, when it analysed spending habits of Visa cardholders in the smaller host cities, contactless payments saw an incredible year-on-year increase of 140% outside the stadium.
As it stands, these results make Visa look good. At the forefront of contactless payments technology, Visa is also in a position to satisfy European regulators who are requesting more security with payments. The way it could do that is through biometrics (something the company is explicit about pursuing). So, perhaps pretty soon our contactless payments will come with a fingerprint authentication, delivering the ultimate in both security and convenience. If any company is likely to realise it first, it’s Visa.
Dominion holds Visa in its Global Trends Ecommerce Fund.
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