BPP has announced the adoption of the NFC technology (Near Field Communication for contactless payments) and the migration of all of its products to NFC.
BPP’s objective is not only to provide this convenient technology that will allow cardholders to expedite their purchasing process, but also to offer clients the layers of security operating in the background, which protect cardholders from fraudulent transactions, even before they take place.
All of BPP’s products, cards, wristbands, watches, and mobile wallets equipped with NFC, not only will allow clients to pay at NFC enabled POS (Points of Sale) terminals but will also allow their use within the public transportation system in São Paulo, and the bus lines that are being equipped with the technology, Rio de Janeiro’s subway system, and internationally, where the technology is available, like on the London Underground (The Tube).
During the first half of 2019, BPP has already issued close to 350 thousand NFC enabled cards with a clear lift in sales during the month of June, where the issuance grew more than 300% compared to May.
Starting from July of 2019 all new product issuance contains by default NFC technology. BPP states that all cards issued under the older standards (Chip and Mag Stripe) will continue to work normally.
As per ABECS (The Brazilian Association of Issuers of Debit and Credit Cards, for its acronym in Portuguese), the volume of credit and debit transactions will experience a 17% growth during this year, and it is expected that a good chunk of this growth will be due to contactless transactions.
Local statistics show that more than 5 million cards are now NFC enabled, and that 82% of the POS infrastructure are also NFC ready.
According to a research by Statista in 2018, there are USD 16 billion in volume generated by NFC transactions globally. It is expected that by 2024 this volume will be more than USD 47 billion. The study also states that by the first quarter of 2019 there are 2 billion NFC enabled devices that will grow up to 4 billion by 2020. It is important to note that 2 years ago the number did not surpass the 760 million devices.
“These innovative capabilities, such as NFC, improve the user experience by allowing a faster financial transaction process to take place, while at the same time increasing its security, and providing the cardholder more convenience. Innovation is part of BPP’s DNA, and we are part of the payments industry’s technological transformation”, states Alexandre Ferrari, President at BPP.
BPP, a pioneer in the implementation and launch of different payment form factors, such as contactless wristbands and watches, offers these products to corporate as well as individuals. Payment wearables are being adopted and last year’s expected revenues were in the order of USD 8.3 billion. From 2013 to 2018 its CAGR was estimated in 17%, and its growth solely in 2018’s last quarter was 31.4%.