The Rise of Contactless Payments: Transforming Consumer Behavior During the COVID-19 Pandemic

Kishore Bellamkonda Sunderajulu

Abstract: The COVID-19 pandemic significantly altered consumer behavior, accelerating the adoption of contactless payment technologies globally. As a safer alternative to cash and card-swiping methods, contactless payments reduced physical interactions, helping curb the spread of the covid virus. This technology, leveraging Near Field Communication (NFC) and QR code systems, enabled seamless, hygienic transactions across retail, healthcare, transportation, and other sectors. Governments and businesses promoted its use, often increasing transaction limits to accommodate shifting payment habits. This paper explores the role of contactless payments during the pandemic, highlighting their impact on consumer convenience, merchant operations, and economic resilience. While providing a safer payment method, contactless payments also boosted digital financial inclusion and encouraged innovation in mobile payment systems. Despite challenges such as initial user hesitancy and cybersecurity concerns, the pandemic established contactless payments as a cornerstone of modern financial ecosystems, shaping the future of cashless societies.

Keywords: Contactless payments, COVID-19, consumer behavior, digital financial inclusion, cashless society, digital payments, Tap & Pay, Mobile wallets, Apple Pay, Google Pay and Samsung pay, tokenization, chip transactions