Contactless Payments - Afrikan Heroes

South Africa Records Astonishing Rise in Contactless Payments

January 25, 2023

South Africa is leading the continent in contactless payments as more than 50% of FNB customers now tap to pay at the point of sale, marking an extraordinary rise in contactless payments since the Covid pandemic struck in 2020.

FNB said on Wednesday that the use of chip-and-Pin payments, where a customer inserts their bank card into a POS terminal, is declining rapidly.

“On credit cards and Fusion accounts, card swipes account for less than 1%, while contactless is more than 60% of all transactions,” the bank said.

“Consumers have shown a strong preference for contactless payments using their contactless-enabled cards or smart devices,” said FNB Card head of spend and customer value management Ashley Saffy in a statement.

“One of the key reasons is that contactless payments are more convenient and faster than swiping or inserting your card. They also provide a higher level of security, as they use near-field communication technology, which is less vulnerable to fraud than traditional contact-driven payment methods. Additionally, the Covid-19 pandemic accelerated the shift towards contactless payments, as they do not require physical contact between the customer and the POS.”

South Africans are not only using their contactless bank cards for payments, but also a wide range of digital card wallets, FNB said. These include FNB Pay, Apple Pay, Google Wallet, Samsung Pay, Fitbit Pay, Garmin Pay and Swatch Pay.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

FNB Partners UnionPay for Contactless Payments

June 24, 2020

One of South Africa’s biggest financial institutions, First National Bank (FNB) is collaborating with UnionPay International (UPI) to set up a mechanism that will allow UnionPay cardholders to make contactless payments with their cards via FNB Speedpoint terminals at merchants across South Africa. This highly innovative partnership marks the first time a South African bank has accepted contactless transactions made with UnionPay cards, providing customers with a safer and smoother payment experience.

“FNB has a diverse contactless payments ecosystem from a card acceptance and payments perspective. We have seen significant growth in the acceptance of contactless card payments as more consumers adopt safer payment and shopping habits. Adding UnionPay to our platform will certainly elevate this trend,” says Thokozani Dlamini, FNB Merchant Services CEO.

According to research conducted by global tech market advisory firm, ABI Research, globally contactless adoption will increase between 6% and 8% when compared to pre-COVID-19 expectations. One of the main reasons is that contactless card payments require a lot less contact with Point of Sale devices, thereby minimising exposure to the virus. Contactless payments have been trending as a safer method of payment since the outbreak of the coronavirus globally.

Speaking on the development, Luping Zhang, GM at UnionPay International Africa says, “we encourage UnionPay cardholders to use contactless payments especially during this challenging time. We take our responsibility to ensure a safe, simple and smooth payment experience to our cardholders to minimize the impact of the pandemic on their daily life.”

At present, UnionPay cards are widely accepted in South Africa in all sectors, effectively meeting the diverse purchasing needs of UnionPay cardholders living and visiting South Africa. In recent years, UPI has expanded its acceptance network to 178 countries and regions, and more than 8.4 billion UnionPay cards issued in 61 countries and regions. In Africa, UnionPay cards have been issued in over 10 African countries, including South Africa, Mauritius, Seychelles, Madagascar, Ghana and Kenya.

Kelechi Deca