The COVID-19 pandemic has accelerated greater acceptance of cashless payments as many consumers hope to reduce contact by choosing not to use cash to pay for food and beverages. Another trend is surfacing as a result of the pandemic due to consumers’ continued concerns about hygiene and safety: Contactless payments are on the rise in retail.
While operators in convenience services have long battled various barriers to adoption of cashless and contactless payments — such as the need to educate consumers on how to download and use a mobile payment app and the overall investment in purchasing and implementing technology across accounts — the pandemic may lessen these barriers as other retail outlets increase usage for cashless and contactless payments. As consumers grow more comfortable with these types of payments, it opens the door for micro markets to have greater acceptance in public and semi-public locations.
PayPal recently announced that CVS Pharmacy is the first national retailer integrating both PayPal and Venmo QR code technology in their checkout systems. This partnership will enable touch-free payments in over 8,000 CVS locations by the end of 2020.