80 percent of Americans prefer using credit or debit cards over cash during their transactions.
Having technology that allows contactless payments could give you a significant competitive advantage. This is because contactless payment is a lot faster than traditional payment methods.
This form of payment involves the use of technology such as near-field communication which allows for the tapping of the card at a POS terminal.
As such, it is a major convenience for both the business and the customer. This article will discuss everything you need to know about contactless payments.
What are Contactless Payments?
These refer to various technologies that allow customers to securely purchase products and services using their chip cards (credit, debit, or smart cards).
To make the contactless payment, the customer will just need to tap their card over an intelligent point-of-sale terminal.
However, since contactless payments don’t typically ask for a PIN or signature, transaction sizes on cards are limited. The maximum amount you can transact via contactless payment will depend on your bank.
Some banks and retailers refer to this type of payment as ‘tap-and-go.’ Examples of non-debit or credit card contactless payments include Google Wallet, Android Pay, Apple Pay, and transit cards.
Benefits of Contactless Payments for Your Business
As already alluded, this form of payment comes with a host of benefits. The following are some of them.
Fast and Convenient
What compels most establishments and institutions to adopt contactless payment systems is the convenience that it brings.
Typically, an average contactless transaction should not take more than 15 seconds. PIN and chip payment systems, on the other hand, usually take more than 30.
Quicker transactions mean shorter and fewer queues and thus happier customers. This allows your outlet the time to deliver superior service.
Additionally, it aids in customer retention and acquisition. This is because consumers want to be served by stores that are efficient.
Safer Transactions
Tap and go payments do not typically ask for your PIN. As such, skeptics of the system often cite fraud as the main reason why they are against contactless transactions.
However, these transactions are some of the safest payment methods around.
This is because they usually utilize encrypted data. Additionally, the chip within a debit or credit card also transmits a unique transaction number.
This high level of encryption ensures that potential thieves or hackers cannot steal your information.
This high level of security is especially important for smaller brands and businesses. It allows them to build trust and nurture loyalty in their customers.
Keeping Customer Information secure
During normal credit card payments, the business remains with some of the customer’s information such as their card number.
However, this is not the case with contactless transactions. This is because contactless cards do not need the card’s number to process a payment.
While most businesspeople are legitimate and honorable, there are unscrupulous individuals who may use such information for nefarious purposes.
Additionally, their systems may get hacked and that information may end up in the wrong hands.
By eliminating the need for a business to come into contact with such information, it adds an extra layer of security to the consumer.
Simple and Straightforward
In addition to quicker transaction periods as well as less time wasted in queues, consumers will also enjoy the simplicity of a contactless transaction.
So long as their balance is within the stipulated limit, a customer does not have to worry about typing in their PIN correctly or having to find their eyeglasses to help them with those efforts.
All they have to do is tap.
Innovative and Feature Rich
A contactless transaction can be executed via both phones and cards, and this brings an array of benefits. For instance, consumers can link their credit or debit card to their phone.
This allows them to easily keep tabs on their transactions, while new features can be added via a software update.
Contactless Payment in the United States
The adoption of contactless payment systems in the U.S. has been remarkably slow, despite their benefits and popularity in other parts of the world.
A 2018 study found that about 20 percent of all transactions occurring in Canada, the U.K., South Korea, and Australia were done via contactless payment methods.
The United States, on the other hand, had less than 3.5 percent of contactless transactions during the same period.
This, therefore, means that by offering contactless payment in your business, you will be differentiating yourself from the competition as an efficient brand.
Implementing Payless Payment in Your Business
Installing contactless payment systems is an excellent way of enhancing customer service. The following steps should guide you if you decide to get such a system.
1. Get a Point-Of-Sale System that Accepts Contactless
Most point-of-sale systems today are outdated. Getting one that accepts all kinds of payments will ensure that you can accommodate any kind of customer.
2. Train Yourself and the Employees
Once you have set up the new system, have everyone do some practice runs on the machine. This will ensure that efficient customer service delivery is not affected by a lack of experience using the system.
3. Put the Machine in a Strategic Location
The ideal location to place your contactless reader is halfway between you and the customers. That way, they will be easily able to dip their cards or wave their phones to pay.
4. Let Your Customers Know You Accept Contactless Payments
Put out notices in your establishment informing patrons that you accept contactless payments. This will get things moving a lot faster.
Ready to Go Contactless?
As mentioned earlier, the fear of fraud is what makes people averse to contactless payments. However, contactless transactions are among the safest forms of payment since they are encrypted.
Additionally, they are a lot faster. This makes them ideal for delivering even more efficient customer service.
Looking to go contactless? iSolutions create technologies that facilitate faster, smoother, and more secure payment processes for businesses.
Our Clover Station solution is a system designed to facilitate effortless contactless transactions, allowing for better service delivery.
Contact us today to learn more about our solutions.