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Orchestrating Contactless Fuel Payments

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These are difficult times for the world and extraordinary times call for extraordinary measures. These measures are covering anything and everything right from the global health market to the payment sector. There has been enough discussion already on why contactless payment solutions are the best bet across the world when all the countries are going through a financial renaissance.

According a report by Juniper research, contactless payments will triple to $6 trillion globally by 2024, from about $2 trillion in 2020. In the US alone, they are expected to rise to $1.5 trillion by 2024, vis-a-vis about $178 billion in 2020.

Today Governments as well as most prominent card issuers like Visa and Master card are recommending contactless payments. Central banks and regulators are also supporting them easing out regulations in contactless payments.

Though contactless payments have been in existence for a while now, they are still underpenetrated and accepted only at limited retail outlets. Certain sectors like the transportation industry are still untouched.

According to Association for Convenience and Fuel Retailing Stores (NACS), an average American spends three hours in an year waiting at the gas station. In other regions like Africa and APAC this behavior constitutes an average of five minutes at fuel stations.

Most of this waiting time is due to acceptance of payments which is either through cash mode or traditional PoS terminals. Countries like the USA, India, Nigeria, Tanzania and UAE have implemented automated toll collection systems like E-Z pass and FasTag that can be used for fuel payments.

Most automobile makers have the bar code or QR code on the inside of the driver’s door to identify the make of the automobile. Customers can use this barcode or opt for a new barcode from the Oil marketing companies and link their automobile to the payment mechanism like wallet, bank, card etc. On the other hand, fuel stations need to implement RFID readers like the one you see on toll stations.

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