Since the COVID-19 pandemic outbreak, contactless payment methods have become the most popular choice among consumers for their convenience and safety. A Mastercard study has shown that 79% of global consumers now use this method with 87% planning to continue the usage even after the outbreak subsides due to its quickness, simplicity, and security features – especially in situations where cleanliness is an issue such as at food establishments or during travel. Businesses can benefit from adding (or switching) transaction types by providing customers these safe options so they don’t need to worry about any risks associated with traditional payment methods.
Contactless payments are all the rage these days and for good reason. They provide business owners with a number of benefits that make it worth their time to enable this functionality at their location. In this blog post, we will discuss what are contactless payments and 4 reasons why business owners should consider enabling contactless payment options at their location.
What are Contactless Payments?
Contactless payments, also known as contactless cards or near field communication (NFC), refer to the ability for a cardholder to make purchases at various retail stores without having to take out their credit card and swipe/insert in the card reader.
Contactless payment systems work by wirelessly transferring data from one device such as your smartphone or contactless debit/credit card and transmitting that data to the payment terminal through radio frequency identification (RFID) technology. This technology enables the card or smartphone to communicate with the corresponding payment terminal when they’re close together – usually a few inches apart at most. This is done over an area where there’s no need for power cables; the data is transmitted from one device to another without wires using electromagnetic waves similar to those used in Wi-Fi communication between devices like laptops and mobile hotspots.
Contactless Payments Are Fast and Convenient.
Contactless payment makes the checkout experience faster and more convenient for all parties involved. With a contactless payment system in place, customers can skip the step of swiping their card and inputting the PIN. They can simply tap the card against the terminal, which makes transactions go much smoother! The NFC technology that’s built into contactless cards makes the payment process go smoothly.
Contactless payments save a lot of time for the business owner by decreasing transaction times and making it easier to invest that time in other business-related duties like checking inventory. Enabling a contactless payment option improves the operational efficiency of the overall business. Adopting contactless payment technology is much more streamlined for both business owners and customers alike!
Contactless Payments Are Safe and Secure.
Contactless payments provide a safe and secure checkout experience for both consumers and the business owner. They offer better encryption and security than traditional credit cards with a magnetic stripe that uses pins to complete transactions. This means your customers can rest easy knowing their information won’t be stolen by hackers when they pay using a contactless credit/debit card or mobile wallet like apple pay or google pay.
Contactless payment uses NFC and RFID technology that prevents skimming of data and provides a more secure transaction process for the customer and the business owner. This reduces fraud risks due to fast quick authorization time, making it difficult for thieves to steal customer’s card info without being noticed by the retailer or other parties involved.
The NFC technology secures the transaction for both customers and business owners because there is no physical contact between the credit card or a smartphone and POS; it’s just a simple tap and go. So without a doubt, contactless payment is a safe and secure option for businesses and consumers who can utilize it in any location where this technology is available.
Contactless Payments Increase Customer Satisfaction.
Contactless payments are the new way to pay for goods and services. It’s a faster, more convenient alternative than credit cards or cash. With contactless technology, a customer just taps their card, smartphone, or wearable device on a reader and in a matter of seconds, the payment is processed.
Contactless payments offer great customer benefits, such as convenience and customer satisfaction. They are the future of shopping for customers and business owners alike. Faster, more secure transactions mean faster checkout times which translates to a better customer experience- cutting down on frustration from waiting in queues while also reducing abandoned sales due to increased convenience.
By offering a contactless payment method, especially during this pandemic, business owners can demonstrate that they value customer safety and convenience. This will ensure the customers’ well-being and increase their loyalty towards the retailer’s brand as it shows them how much emphasis is put on providing for all of their needs to make sure that every buying experience remains safe and enjoyable.
No Additional Cost Required
If you are a business owner trying to enable a contactless payment option at your location, there is good news for you. Businesses that enable contactless payment options do not have to worry about paying additional fees. They pay the same rates as they would with a regular credit card transaction and enjoy all of the benefits, too! Businesses that fail to recognize these advantages will be missing out on potential customers because consumer shopping preferences are now shifting to contactless payment methods.
Finical Can Help You Enable Contactless Payment at Your Business.
The future of business is changing, and contactless payments are leading the way. A survey by Visa finds that approximately half of the millennials in America have a contactless card or a mobile wallet, and they prefer to use the contactless payment options at the point of sale. It means that contactless payment technology is likely to become more prevalent as time goes on. For businesses who want their customers’ needs met today and looking into tomorrow, adopting this new payment technology can be an important step towards fulfilling both desires!
Enabling contactless payments at your business is easy, all you need is an NFC-enabled credit card reader. Finical’s latest credit card readers and terminals are equipped with NFC technology that allows business owners to accept contactless payment easily and securely at their location. Qualified merchants can also receive a free credit card reader and terminals when they signup with us. Contact us today to learn more about our zero fee credit card processing program and free equipment options.