As new payment technologies are taking hold in the American market, one big question that merchants have is what the benefits of accepting contactless payments are. Studies show that there are many benefits to both consumers and merchants. In this blog article we will examine those benefits and hopefully help you decide if accepting contactless payments is the right choice for your business.
Benefits to your customers:
Some of you may remember the first contactless payment method that was introduced in this country. It was done by Mobile gas stations and billed as the "Speed Pass.” It was launched in 1997 and the commercials showed happy consumers waiving a key fob past their iconic Pegasus logo which magically lit up indicating the customer was ready to pump. Convenience is something the American consumer looks for in all things. Industry research has shown that contactless transactions are faster than traditional credit card transactions and far faster than cash transactions. Shorter transaction times ultimately leads to shorter lines and greater customer satisfaction.
Aside from being the “speedier” option for payment, it also can help with security concerns. With contactless payments, the card (or device) never has to leave the customers hand. The fact that they don’t have to hand it off to a cashier, or insert it into a chip card reader to complete the transaction greatly reduces the chances of lost or left behind cards. It also addresses the possibility of a dishonest cashier or waiter covertly swiping the magnetic stripe of a card through a skimming device to steal account numbers. Mobile wallets like ApplePay and AndroidPay utilize the same NFC (near field communication) technology that contactless cards use. Merchants who are able to accept contactless payments will be well positioned to accept these digital wallet payments which are already very popular amongst younger and affluent consumers. Aside from being the new "cool kid on the block," digital wallets also use advanced security features like tokenization and biometric user authentication making them especially attractive to the occasional consumer suffering from identity theft paranoia.
Benefits to your business:
The quicker transaction times we touched upon above definitely help your business by keeping wait times down and your customers happy; but it can also help increase your overall revenue due to potentially not needing as many cashiers on duty during peak business times. By properly educating your customers and staff on the benefits of contactless payment technology you can improve operational efficiency in your business.
Research suggests that consumers with contactless payment cards and devices often exhibit greater loyalty to the retailers that accept them. By implementing contactless integration into your existing loyalty programs you can motivate customers to purchase more frequently through cross platform incentives. Enabling your POS system to accept mobile phone based contactless payments represents a multitude of marketing opportunities by using personalized mobile couponing, and location-based marketing campaigns to communicate sales and incentives to consumers inside or nearby your locations.
Find out more about contactless payment acceptance by contacting us today!