WASHINGTON—Saying it is part of an effort to modernize its systems, the U.S. Department of Agriculture Food and Nutrition Service (FNS) will begin a five-state pilot utilizing contactless mobile payments for recipients in the Supplemental Nutrition Assistance Program (SNAP).
By allowing contactless and mobile-driven payments, the FNS is seeking to create a more flexible program that accounts for the changing behaviors of consumers at all income levels, Payments Journal reported.
“This move is a massive step forward in modernizing payment systems for government benefits and represents a positive shift to meet both customers and retailers at established and growing points of technology,” Payments Journal said.
Reflecting the shift to digital payments, previous research from a PaymentsInsights study shows 53% of Apple iOS users and 41% of Google Pay consumers used a digital wallet in a 12-month period to make an in-store purchase.
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