Imagine how you feel when you get in line at the grocery store and someone whips out their checkbook. If you’re like most people, you groan internally and wonder why anyone bothers writing checks anymore.
Well, this is how a good portion of the world views paying with a traditional debit or credit card. Entering a PIN or waiting to sign your name is a tedious and unnecessary waste of time.
That’s because contactless payments are becoming increasingly popular worldwide. According to a study published by A.T. Kearney, contactless payments have reached a 64% adoption rate in the U.K and 67% in Australia. In comparison, just 3% of the payments made in the U.S. are contactless.
4 Benefits of Contactless Payments
Thanks to the rise in digital wallets, contactless payments are becoming more popular across the U.S. Listed below are four reasons why this is good news for consumers and retailers alike.
Contactless payments remove friction
The number one thing that’s keeping your customers from purchasing from you is friction. EMV chip technology absolutely has its advantages over magstripe debit and credit card transactions but these transactions still take time to process.
In comparison, contactless payments speed up the buying process. One tap of your card and the transaction is completed. There’s no need to type in, sign, or print off anything.
Increased customer satisfaction
I could go on Amazon right now and make a purchase in less than a minute. And it would be shipped to my house for free as soon as the next day.
So, there’s nothing customers hate more than going to a store and getting stuck waiting in line. Since contactless payments are faster, this decreases the time customers spend waiting in the store.
You can even find ways to reward customers for contactless purchases. For instance, companies like Starbucks give customers loyalty rewards for making purchases within their app.
Contactless payments are more secure
Most customers are wary of adopting new technology because they aren’t sure if it’s safe. But contactless payments reduce the likelihood of fraud and are more secure than other payments.
In the U.K., contactless payments accounted for just 1% of all credit card fraud. Yes, fraud can happen with contactless payments but the risk to consumers is relatively low.
Contactless payments are better for retailers
Contactless payments don’t just benefit consumers, they benefit retailers as well. By accepting contactless payments, your business will be seen as more forward-thinking.
You’ll have more options as to how you can increase customer loyalty and encourage consumers to spend more in the store. A marketing managers dream… And, you won’t get stuck with any additional fees so you don’t have to worry about taking a financial hit.
Here are a few ways to prepare your business for accepting contactless payments:
- Find out what you need to do to upgrade your equipment.
- See if you need to make any software upgrades.
- Find out if there are transaction limits that require additional customer verification.
- Consider how you’ll train your staff on handling contactless payments.
To your success!