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FNB customers set a new norm as contactless surpasses chip/PIN contact payments for the first time ever

24 May 2021 FNB

FNB has revealed that contactless payments have surpassed Chip and PIN contact payments for the first-time ever among its Credit, Debit, Fusion, and Virtual Card users. The Bank attributes the behavioural shift (from chip contact to contactless) to consumer’s preference and awareness of safer, convenient, and quicker means to pay at a Point-of-Sale.

Raj Makanjee, FNB Payments Executive says, “This is a remarkable milestone for the financial services industry, and it augurs well for efforts to improve safety and convenience in the payments network. With over 10 million contactless cards in the hands of our customers and 200 000 Virtual Cards activated, we are delighted to see our customers pioneering what we believe to be the future of payments globally. It goes without saying that the pandemic has definitely accelerated the growth in contactless payments as consumers and retailers continue to prioritise safety, convenience and efficiency.”

Chris Labuschagne, CEO of FNB Card says, “In March and April this year, our customers processed over 30 million contactless payments, worth over R10 billion in each month. Over the last 12 months, we’ve seen year on year growth which ranged from 200% on regular months and over 400% during peak periods. We firmly believe that new solutions like our Virtual Card on our digital platform will significantly accelerate this trend, supported by a willing customer base which continues to lead the market on the use of efficient financial services tools. In addition to the virtual card payments option on the FNB App, customers also enjoy a wide range of convenient contactless payment alternatives such as Samsung Pay, Fitbit Pay and Garmin Pay, with additional new payment options to be made available soon.”

According to FNB, the scope for growth in contactless payments remains vast and the bank is of the view that chip contact and contactless payments will continue to compete over the medium term. However, as more retailers roll-out contactless Point-of-Sale devices for greater efficiency, the Bank sees better growth prospects in consumer usage and adoption.

“With the payment’s environment being an ever evolving one, our goal as a financial services provider continues to be to minimise reliance on cash by ensuring that customers have access to an array of payment options that accommodate their daily needs. We remain committed to providing a wide range of unique and innovative payment solutions that are centred around true customer and business value,” concludes Labuschagne.

Quick Polls

QUESTION

Healthcare brokers have long complained about inflation-plus medical scheme contribution increases; but pandemic may have changed things. What will pandemic-induced changes in hospital utilisation do to medical scheme contribution increase patterns?

ANSWER

Below inflation increase for 2022, then back to inflation-plus
Long-term trend of below inflation increases
Inflation-linked hikes for 2022, then back to inflation-plus
This is a 2-year hiccup, inflation-plus increase trend remains in place
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