How retailers are adapting to the rise of contactless payments

It’s crazy to think that contactless payments are now the norm. It seems like only yesterday that they were a new concept.

Whether you’re tapping a card, waving your phone, or scanning a smartwatch, this technology has reshaped how consumers spend and how retailers operate.

Why Contactless Became the New Normal

The rise of contactless payments didn’t happen overnight, but recent years have dramatically accelerated adoption. Several key drivers played a role:

●      Health and hygiene concerns – Contactless options surged during the pandemic as consumers looked for low-touch ways to pay.

●      Speed and convenience – Tapping is faster than chip-and-PIN, and mobile wallets let shoppers leave their physical cards at home.

●      Wider acceptance – Payment terminals, apps, and even vending machines now support NFC (near-field communication) and QR-based payments.

●      Changing customer expectations – Convenience isn’t optional anymore. Customers expect quick, seamless payment experiences.

How Retailers Are Responding

The shift to contactless isn’t just about installing new card readers. It’s changing everything from front-end checkout experiences to backend data systems.

Upgrading POS Systems

Retailers have invested heavily in modern point-of-sale (POS) systems that support mobile payments, digital wallets, and QR codes. These systems are often cloud-based and integrate with inventory, loyalty, and customer data tools.

Offering App-Based Checkout

Many large retailers now offer apps that support barcode scanning, mobile payment, and self-checkout, allowing shoppers to skip the register entirely. Even smaller businesses are adopting mobile-first POS apps to stay competitive.

Enhancing Digital Wallet Integration

From Apple Pay and Google Pay to PayPal and regional alternatives, retailers are prioritising compatibility with digital wallets. Yes, it’s about being flexible, but it’s also about speed and reducing friction at checkout.

Leveraging Data from Digital Payments

Contactless transactions create data. Smart retailers are using that data to personalise promotions, track foot traffic, and analyse buying patterns in real time.

Retail vs. E-commerce - Contactless in Both Worlds

Even though contactless originated in physical settings, it's now blurring the line with digital. For example, mobile wallets and biometric authentication are used just as much online as in-store.

That convergence is pushing retailers to unify their online and offline payment experiences, offering consistency no matter where or how someone shops.

The Role of Mobile and Crypto in Payments

Contactless isn’t just about traditional card networks anymore. Mobile-first platforms and even digital assets are becoming part of the mix.

For instance, trading apps have normalised the idea of fast, secure, app-based finance. A mobile trading platform like Eurotrader shows how digital-first financial tools are shaping consumer expectations. People now expect the same speed and control in retail payments that they get when moving money or placing trades from their phone.

Then there’s the crypto angle.

Some retailers are experimenting with accepting cryptocurrency as a payment method, while others are watching how digital assets and blockchain might streamline settlement and reduce fees. Platforms that support cryptocurrency trading online are helping more people understand and access this space, making it more mainstream over time.

As crypto and mobile-first finance continue to evolve, retailers may need to adapt yet again.

Challenges Ahead

While the shift to contactless has clear upsides, retailers still face a few challenges.

●      Transaction fees – Contactless payments (especially via mobile wallets) can carry higher fees than standard debit or cash.

●      Fraud prevention – While most contactless payments are secure, limits on tap amounts and tokenisation aren’t foolproof.

●      Technology investment – Smaller retailers may struggle with the upfront cost of new terminals or app development.

Despite this, the consumer trend is clear, and the long-term ROI on offering seamless payments usually outweighs short-term costs.

Where It’s All Headed

The rise of contactless payments is a shift in how people interact with money. For retailers, adapting to this change is about staying relevant.

Whether it’s tapping a phone, paying in crypto, or linking loyalty through a digital wallet, the future of retail is fast, frictionless, and increasingly mobile.

Retailers who understand that, and invest in the tech, systems, and partnerships to support it, won’t just keep up. They’ll lead.

FAQs

Are contactless payments safe?

Yes. They use encryption and tokenisation, which reduces the risk of card data theft. Most also require biometric verification on mobile devices.

Do customers actually prefer contactless, or is it just hype?

Data shows strong consumer preference for speed and convenience. Retailers that offer it often see faster checkout times and higher customer satisfaction.

What if a customer doesn’t have a contactless card or mobile wallet?

Most retailers still support chip-and-PIN or cash, but the trend is clearly shifting toward digital-first methods.

Will crypto become a common payment method in stores?

Some retailers already accept it, but it’s not widespread yet. However, consumer familiarity is growing, especially through platforms that offer cryptocurrency trading online.

Is contactless more expensive for retailers?

Sometimes, depending on the provider and volume. However, it’s often offset by faster checkouts, higher customer satisfaction, and lower handling costs.