Due to the coronavirus pandemic, many businesses have relied on the digital world to continue their operations and service their customers. In turn, contactless payments have become necessary for almost every retail transaction, looking to minimize the risk of virus transmission.
According to a study by National Retail Federation, contactless payments have increased for 69% of surveyed retailers last January 2020, and that this will continue to grow through this year 2021. The study also indicates that 19% of consumers stated that May of last year was their first time to make a digital payment in a shop.
If your business hasn’t yet considered no-touch payments or you’re just starting with the implementation, let us help you understand what it is all about and the benefits you can expect from it.
What are contactless payments?
Contactless payment refers to the process wherein shoppers can pay for products or services without signing for a transaction, entering a PIN, or swiping a card. Shoppers can conveniently pay using their debit AND credit cards or other online payment options through the Near Field Communication (NFC) and Radio Frequency Identification (RFID) technology, or a QR code.
NFC and RFID operate through the wireless exchange of data between devices (a card, a card reader, or a phone) nearby. On the other hand, a QR code is often used on online payment apps like Venmo and Paypal.
If implemented and managed the right way, the no-touch payment method can benefit businesses that want to streamline their transactions. Transaction sizes can also be limited depending on the retailer or merchant. However, if you’re planning to allow large transactions, integrating a point-of-sale or POS system in your operations would be ideal. This can make your payment collections and tracking easier and secure.
What are the benefits of accepting no-touch payments?
- Added protection
With the current pandemic still ongoing, limiting physical contact plays a significant role in preventing the virus from spreading. By offering a no-touch payment option in your business, your customers won’t have to enter their PIN in the card reader, and you won’t have to accept cash from them. This way, you don’t have to sanitize card terminals or worry about the danger of using payment hardware, wherein germs can be transferred.
- Efficiency in operations
If you think that employing no-touch payments in their operations will just cost them a huge amount of money. In truth, this method is actually a great way to lower your operations costs, and most importantly, boost productivity in the workplace or store. For instance, your staff can accommodate more customers with a contactless card terminal or even encourage them to spend more since the transaction will be effortless. They won’t have to enter their PIN or even dig through their wallets to pay with cash. On top of that, both you and your customer won’t have to count back the change.
- Better experience
Through contactless payment methods, your customers can complete their transactions much easier and faster. This allows you to present more forms of payment, depending on your customers’ preferences. This also means that customers will have more time for their busy lifestyles. On the business side, your shop is also less likely to have long queues on the counter or process huge amounts of cash, which can affect customer satisfaction. As they say, the more efficient the operations are, the happier the shoppers will be.
When no-touch payments were first introduced, many people’s primary concern is how secure will it be. With the advancements of technology over the years, this method has proven to provide fast and safe transactions for users. For instance, some contactless payment methods offer a transaction limit amount. If you go over that, you’ll have to enter a PIN and chip.
Along with this, many debit and credit card issuers also carry out regular security checks where card owners will be requested to verify a contactless transaction or enter their PIN. This is beneficial in reducing fraudulent activities or stolen and lost cards.
No-touch payment is an excellent way to provide more flexibility on your business’s payment options, as well as for your customers’ convenience. Giving shoppers a more convenient and safer way to pay for goods is also giving them more reason to be part of your loyal customer base. After all, sales is the key to the success of your business. Only use reliable contactless payment providers and perform proper conformance testing to avoid issues during employment.