How The Pandemic Makes 90-Day Customer Histories A Fraud-Fighting Weakness
Consumers who are seeking to avoid exposing themselves or others to COVID-19 are turning to eCommerce where possible and are demanding touch-free ways to pay when they have to visit stores in-person.
A June report found that 27 percent of U.S. debit payments were contactless before the pandemic — a rate that has since leapt up to 40 percent. Financial institutions (FIs) are therefore expected to offer more contactless cards this year and some are also unveiling services intended to help consumers easily add cards to their digital wallets.
FIs are also finding that consumers are currently showing less interest in using credit cards, which may reflect a desire to avoid taking on debt while struggling with unemployment and other financial losses. Consumers are instead using debit, and one financial services company expects U.S. consumers to shift as much as $100 billion in annual spending from credit to debit cards.