Top 5 Benefits of Contactless Payments
Contactless payments are a trend quickly transforming the way we do business. While the exchange of paper money used to be the hallmark of the shopping experience, payment has been taking on new and exciting forms, from simple text to near-field communication (NFC). In addition, mobile and wearable payment solutions are changing the contactless payments landscape, resulting in rapid implementation worldwide. On our blog, you can learn more about the specific types of contactless payments, including QR codes and mobile wallets.
Customers are growing to expect unparalleled convenience from their payment options. More than half of US consumers use at least one form of contactless payment, and according to a recent study by Juniper Research, the contactless market size in 2022 is $4.7 trillion and is expected to grow 130% by 2027. Today, point-of-sale (POS) systems are being overhauled to facilitate the growing demand for contactless payment options.
Contactless payments significantly benefit consumers and businesses (retail and restaurant). Contactless payments are widely used to increase throughput and considerably decrease the time consumers spend waiting in line or waiting to check out at restaurants and retail businesses. Read on for more details about the benefits of contactless payments.
Increased Speed of Service
One of the top contactless payment benefits is the amount of time saved. Less processing and handling of cash means transactions are completed faster, reducing or eliminating queue buildup in retail stores and increasing table turnover in restaurants. Contactless payment also typically bypasses the need for customers to input a PIN (Personal Identification Number), zip code, or phone number, again saving time. And contactless payment methods are less likely to malfunction than magstripe card readers.
The average transaction time of a contactless payment is 10-15 seconds, whereas cash or credit card transactions can take minutes. Faster throughput means you can eliminate abandoned purchases due to long lines. You’ll capture more revenue and keep customers happy by removing any unnecessary steps from the payment process.
Ease of Use
Another benefit of contactless payments is their ease of use for customers and businesses. Consumers can go contactless with the same device they are already using for everything from making calls to browsing the web: their smartphones. Similarly, the necessary tech is readily available for businesses. For example, NFC readers that can accept traditional cards and contactless payments can now easily integrate into existing POS systems.
Instead of requiring customers to enter their credit card information for every purchase, stores can integrate features like Apple Pay, Google Pay, or any other cashless wallet to quickly finish a transaction with a facial scan or fingerprint (on the customer’s device rather than a publicly handled payment terminal). Paradise POS technology can seamlessly incorporate contactless payment options, including QR codes.
Retail POS technology that enables such activities would be well worth the investment. Research from McKinsey & Company showed that businesses that excel at personalization could generate 40% more revenue than businesses that don’t make it a priority.
Security
Contactless payment methods are as safe as EMV chip and PIN transactions. Even better, your customer’s credit card information cannot be used fraudulently in the event of a data breach. With contactless payments, the card/device gives the reader a unique, one-time token that identifies the transaction with advanced encryption — without storing sensitive information. So if your business operates in a high-risk industry, using contactless methods protects your business from hefty fraud-related fines levied by card networks while also making your customers feel secure.
It’s also not possible for someone to read a customer’s card from a distance (as they can with magstripe cards) since the technology behind contactless credit cards is based on a short-range RF (radio frequency) antenna that only transmits digital data within a very small range. Finally, contactless cards or devices always stay in the owner’s possession, so there is no opportunity for card skimming.
Operational Efficiency
The benefits of contactless payments extend into streamlined business operations. Contactless payments are an effective electronic payment method as there are fewer stages involved in the procedure. As a result, contactless payments provide faster transaction processing, working twice as quickly as traditional cards. And as we mentioned, better turn-around and reduced queue waiting times increase profitability. The increase in productivity also results in higher customer satisfaction. More people will prefer your stores if your payment solutions are fast, easy to use, and effective.
Enhanced Customer Experience & Loyalty
Satisfied customers are one of the most significant contactless payment benefits, helping you attract and retain new customers. According to the Visa Back to Business Study, 63% of consumers would switch to a new business that provides contactless payment options — so make sure that business is yours.
Customers also want to sign up for loyalty programs that are convenient and offer good value. Contactless payments are a great platform for loyalty programs and marketing. Customers are rewarded by digital loyalty programs for using contactless payments. At the time of payment, the program can automatically offer discounts and accrue loyalty points.
Successful business owners understand the importance of putting the customer experience first. You can achieve that with the help of contactless payments. The importance of letting customers pay via the methods they prefer ultimately leads to increased customer satisfaction. Offering contactless as an option can enhance the consumer experience, especially as it continues to trend as a preference.
Get Started On Going Contactless
Contactless payments have gained much traction due to many advantages, including quicker and simpler transactions, greater security and fraud protection, and rewards for loyal customers. These solutions can help you keep ahead of the competition and provide your clients with the newest technology.
Paradise POS provides retailers and restaurants with a complete iPad POS system that strengthens the customer experience while improving productivity and driving profitability. Let us help you integrate your technology so you can begin enjoying the benefits of contactless payments today.