The coronavirus pandemic has changed the way transactions have been done so far. Social distancing to avoid contracting the deadly coronavirus has seen an increasing number of people opting for newer modes of transaction. This has seen contactless payment gaining traction.

And with almost a year into the pandemic, more than 50% of Americans are considering digital-only banks, according to a new survey by Juniper Research. Contactless payment services have not only emerged as the most convenient way to make transactions but also are likely to grow in the future given that the virus scare is far from over.

More People Prefer Digital-Only Banks

According to the new report by Juniper Research, published in which-50.com, the digital-only trend is being observed across the globe. The report states that 60% of consumers have shifted to contactless payment services because of fears of COVID-19.

Although OEM Pay had a head start in the United States, not too many people were using contactless cards despite having the facility. However, following the coronavirus outbreak, 89% of the contactless payment users in the country have started using contactless cards. Of those who are still not using them, 35% plan to start soon.

OEM pay solutions have gained prominence over the past few months. Today 89% of the customers, who use contactless payment options, have at least one OEM Pay solution. This shows the rapid growth in the use of OEM pay solutions in the country.

Contactless Payment Here to Stay

Although options for contactless payments have been present in the United States for a quite long time, the sudden surge happened only after the coronavirus outbreak. Till some time back, the nation was a laggard in terms of contactless preference, with only 24% using it, according to a report by global data and insights firm Dynata. That may, however, change fast as businesses are rapidly adopting contactless transactions keeping safety in mind.

The surge in users of contactless cards and other touch-free options have been working miracles for companies offering these services. The coronavirus fears have not only compelled people to use contactless payment but also changed their behavioral pattern, as many now want to continue with this mode.

Stocks to Watch

Apple, Inc.’s AAPL Apple Pay is a mobile contact payment system and digital wallet service that Apple Inc. introduced in 2014. The service allows users to pay for products and services using near field communication (NFC) at the point of sale, whether in person, via iOS apps or the Internet.

The company’s expected earnings growth rate for the current year is 36.3%. The Zacks Consensus Estimate for current-year earnings has improved 11.5% over the past 60 days. The company has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PayPal Holdings, Inc. PYPL has emerged as one of the largest online payment solutions providers on the back of its strong product portfolio and two-sided platform that enables it to offer smooth and secure transaction facility to both customers and merchants.

The company’s expected earnings growth rate for the current year is 16.8%. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the past 60 days. The company has a Zacks Rank #3 (Hold).

Visa, Inc. V operates retail electronic payments network worldwide. The company provides transaction processing services (primarily authorization, clearing and settlement) to financial institutions and merchant clients through VisaNet, its global processing platform.

The company’s expected earnings growth rate for the current year is 8.5%. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the past 60 days. Visa carries a Zacks Rank #3.

Global Payments Inc. GPN, initially Global Payments Inc., spun-off from its former parent company in 2001. Including its time as part of its former parent company, it has been in the payment technology services business since 1967.

The company’s expected earnings growth rate for next year is 2.4%. Its shares have gained 14.6% over the past three months. Global Payments has a Zacks Rank #3.

Alphabet, Inc. GOOGL, apart from other products and services, also offers Google Pay, a digital wallet platform and online payment system developed to power in-app and tap-to-pay purchases on mobile devices, enabling users to make payments with Android phones, tablets or watches.

The company’s expected earnings growth rate for the current year is 16.1%. The Zacks Consensus Estimate for current-year earnings has improved 9.3% over the past 60 days. Alphabet carries a Zacks Rank #3.

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