Despite COVID-19 causing many impacts in the lives of families, government, and businesses alike, the pandemic has also caused a particularly interesting change in the banking system. Before the pandemic, citizens were able to purchase products by using both physical cash as well as credit/debit card transactions. Recently due to coronavirus, a new means of banking has been developed and could prove to change the future of the banking system forever.
Throughout the past months, the COVID-19 pandemic has caused businesses to consider bringing changes to the banking system. Public fears of coronavirus spread and contamination lead many consumers to pay for their purchases by using a card instead of physical cash. Similarly, across the United States of America, Starbucks, Shake Shack, Whole Foods, and many other businesses, decided to promote the trend of a cashless society by refusing to take cash in a number of their stores and force their customers to use a card only. Despite this being an extremely controversial decision for businesses to make, the promotion of a cashless society as a result of the COVID-19 pandemic has the potential to completely change the future of the banking system and the world as humans know it today.
The result of public fear from the COVID-19 pandemic has led banking systems and businesses to attempt to discover new, innovative ways for consumers to purchase products through a safe, contactless method. As a result, American banks have developed a new version of cards that promotes contactless purchases by allowing consumers to simply tap their card at the checkout counter instead of having to physically swipe their card in a machine or hand their card to another person. Since March 2019, studies have shown that consumer usage of contactless payment has increased about 150%. The innovation of contactless payments have proven to be the new future of the banking system. Despite there being mixed opinions from consumers about opting for contactless payments, the contactless payment system has proven to be very advantageous, especially while living in a world-wide pandemic.
Despite some opposing the new idea of a banking system, contactless payments allow customers to be able to purchase materials fast, secure, and most importantly, safely. Because contactless payments are easy to use, the future is looking bright for contactless payments in the banking system. In fact, contactless pay in the banking system has encouraged more innovations from businesses to promote an effective cashless society. Recently Amazon has developed the technological advancement of Dash Cart, which is a grocery store where one can put their items in their cart and walk out immediately after without the worry of waiting in cashier lines or swiping their card. Despite all the controversy surrounding the subject, the clear fact is that due to the development of contactless payment, we are one step closer to innovation of the future.