6 Major Advantages of Contactless Payment
Due to the COVID-19 pandemic, many business owners and managers have made considerable investments in contactless payment tools. These types of tools give owners and managers an upper hand on the virus by limiting customers’ interactions with the POS system, thereby keeping both customers and staff safe.
If you haven’t already invested in contactless payment for your retail business, you probably have a few questions. What is contactless payment?
A contactless payment system supports secure monetary tractions using a debit card, credit card, smartcard, or any other device using near-field technology. When a system prompts a customer to pay for the product or service that they’ve purchased, the customer can simply place their card near the reader. In seconds, the purchase is processed – it’s that easy!
No PIN is required for contactless payment, but there are some limitations on contactless payment for security reasons. For example, the amount allowed in a contactless payment varies by bank and country, but typically has a limit to prevent electronic bank fraud. In some cases, a signature may be required if the payment is a larger dollar amount.
The Top 6 Advantages of Contactless Payment
This tap-and-go form of payment has become one of the leading technologies for consumers in the digital age and the pandemic. Additionally, COVID-19 has completely changed the way we do business.
Even though we are getting back into the swing of things, surface and person-to-person contact have been minimized as much as possible. Businesses must adapt and fundamentally change the way they do business with consumers. Over time, contactless pay has become a new way to make a safe payment. Moreover, contactless payment comes with several significant benefits, including:
1. Ease of Use
Are you tired of waiting in lines at the store? Does it seem like you’re waiting forever for approval after entering your PIN? Electronic payments in a retail setting have never been more manageable, thanks to contactless payment technology.
That is a thing of the past with contactless payment. It eliminates cash or the use of a PIN on a card. All of the hassles resulting in longer transaction times at checkout disappear with contactless payment, making it the most straightforward electronic payment format.
2. Safer Transactions
Encryption has been an electronic security issue for years. From manipulating chip readers with hidden devices to stealing information via the magnetic strip on the back of a card, fraudsters find any way they can to clone information and potentially commit identity theft.
With contactless payment, the chip technology prevents fraudulent purchases by encrypting the chip’s data to the merchant. It is more challenging to steal any information this way.
3. Accept Card/Mobile Payments
One of the most beneficial aspects of contactless payment is the ability to use multiple devices to pay. We aren’t restricted to using just cards as a form of electronic payment anymore. Of course, you can always use the traditional debit or credit card provided that it has a chip in it. But now, mobile devices are also coupled with near-field technology, allowing for mobile payments without carrying a card or wallet.
Take an Apple iPhone, for example. The iPhone offers a mobile wallet to its users for free. If you forgot your credit or debit card but have the information stored on your phone, you can simply use your mobile wallet and the nearest contactless payment system to make a purchase.
4. Improved Efficiency
With fewer steps in the process (like skipping past the PIN, swiping a card, or trying to come up with the exact amount of cash), contactless payment comes with improved efficiency as a form of electronic payment.
Working twice as fast as standard cards and taking only seconds to complete a full transaction, contactless payment also allows for improved turnover and shorter queue times. The improved efficiency also leads to enhanced customer satisfaction. If your payment systems (in this case, contactless payments) are seamless and efficient, more customers will be drawn into your retail space.
5. No Extra Processing Fee
Contactless payment doesn’t mean that you have to invest further in another electronic platform and pay additional fees.
The same fees that exist for a normal credit or debit card transaction with a retailer are in place for contactless payment technologies as well.
6. Improved Sanitation
As with anything throughout this pandemic, sanitation has been pushed to the front of retail space operations. Limiting physical interaction is a top priority for businesses across the retail space.
This includes payment methods and how retailers are handling monetary and electronic transactions. While retailers are doing their best to sanitize card terminals between customer usage, it might not always be thorough or feasible with high customer queues.
So what does contactless payment do to fix that?
With contactless payment, customers never touch the card terminal or pinpad. They only touch their card or mobile device to complete the contact payment transaction. This means less physical contact and less transmission of germs between customers.
With the convenience of contactless payment, retailers can focus on sanitation and improving customer satisfaction in other areas that need it.
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