3 Industries Creating The Most Value Through Contactless Payments

As new technologies continue to emerge, the decline of cash’s reign is inevitable in our digital world. How we shop has significantly shifted over the last decade, with contactless payment becoming the most adopted means of making purchases. 

As the name suggests, contactless payments don’t require direct card-to-reader contact; instead, contactless methods include tap-to-pay card features or payment apps. This new turn in the financial market emphasizes safety and limits physical contact—a priority during the pandemic's peak that is now a permanent addition to our purchasing expectations. According to a Payments Card and Mobile (PCM) report, the global smart card market is expected to exceed $65 billion by 2025 due to the increase in contactless transactions. As various forms of these payments continue to be accepted, they will drive some of the most significant changes we’ll see in the future of commerce.

Paying with your car (v-commerce), exchanging currency quickly through different virtual worlds in the metaverse, and biometrics may soon be part of everyday life. Today, we already see checkout-free technology and fascinating uses of payment apps. If you think about the Starbucks app, for example, you may already know that it does far more than collect funds. Like most payment apps, Starbucks creates personalized deals and offers to drive loyalty—customizing store favorites, earning reward points, and providing convenient user experiences are specific benefits for this franchise.

To better track the future of payments in each sector, Worldpay from FIS shares the biggest changes for consumers and why in their Payments 2025 report. Here are three industries where FIS sees the most growth driven by payments. 

1. Travel

With restrictions decreasing, the travel market is slowly re-emerging. Here, the adoption of contactless payment has become prevalent due to the growing number of devices supporting such technology. Frictionless payments are now integral to the customer experience, and keeping up with the latest industry trends will fulfill customer needs and keep travel companies relevant.

Travel companies such as Airbnb, Expedia, and AirAsia are racing to create SuperApps covering the entire travel journey. The reason is simple: if you make everything easy to execute in one place, you build loyalty to one brand over the other. Once you have the trust of your consumers, you can create personalized experiences to enhance their loyalty. Creating brand preference through payment ease during travel is relatively easy to implement and produces results in a short period. 

2. Grocery

Similarly, the typical grocery store is going through changes regarding different purchase forms and contactless environments. This reconstruction creates opportunities for retailers, and we are seeing new online buying options. Curbside pickup, online ordering, QR codes, and mobile apps can all integrate and facilitate payments in a seamless way that enhances the overall customer experience.

Large grocers are looking to consolidate payment technology by adding banking as a service for customers and vendors. One app can process transactions, handle your banking, and turn the grocery chain into a full-service hub. As the grocery stores become hubs to provide convenience, there will also be a rise in stores with electric vehicle charging stations that require a slightly longer charging time to help keep customers engaged and more likely to peruse the store. 

3. Gambling

Consumers use smartphones to find a ride, order groceries, and coordinate their business and social lives, but casinos and other gambling facilities have been slow to adopt the technology required. In a rush to gain market share in a fast-growing industry in the United States, there are still plenty of opportunities to turn the predominantly cash-centric casino industry cashless. The convenience of mobile payments, including credit and debit cards, e-wallets, and even cryptocurrency, provides large benefits we can already see in sharing personalized incentives and learning more about customer preferences. 

Much like streaming and Netflix in the early stages, the entities that retain the most about their consumer preferences will have an early advantage in tailoring loyalty programs and creating new content. 

It is safe to say that the future of financial transactions favors contactless payments—credit and debit cards, Apple Pay, Google Pay, etc. The transition from a previously cash-dominant world to a new contactless one is only expected to grow in popularity and availability. Consumers are no longer constrained by the amount of cash they have in their pockets and look for companies that can offer easy and convenient payment methods. 

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