First National Bank (FNB) has revealed contactless payments have surpassed traditional chip and PIN payments among its card users for the first time ever.
The bank made the announcement on 24 May.
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“This is a remarkable milestone for the financial services industry, and it augurs well for efforts to improve safety and convenience in the payments network,” said FNB Payments Executive, Raj Makanjee in a statement.
FNB attributed the shift to contactless payments to consumers’ preference and awareness of safer and quicker payment methods.
Contactless payments are popular with FNB customers
In March and April 2021, FNB processed over 30 million contactless payments totalling over R10 billion each month.
The payment method experienced a year-on-year growth ranging from 200% up to 400% during peak periods.
“We firmly believe that new solutions like our Virtual Card on our digital platform will significantly accelerate this trend, supported by a willing customer base which continues to lead the market on the use of efficient financial services tools,” said CEO of FNB Card, Chris Labuschagne.
The bank has issued more than 10 million contactless cards to its customers and activated 200 000 virtual cards.
FNB expected the popularity of the payment method to grow as more businesses adopted contactless payment methods.
“With the payment’s environment being an ever-evolving one, our goal as a financial services provider continues to be to minimise reliance on cash by ensuring that customers have access to an array of payment options that accommodate their daily needs,” Labuschagne said.
Feature image: Unsplash/Christiann Koepke