Contactless payment technology
Contactless payment technology is one that is currently impacting consumer thoughts on services and products purchase. Those that are very much into the world of cashless payments would have been familiar with the term “contactless payment.”
This technology uses contactless card machines to process the payments made from credit cards without requiring the card reader to enter their PIN code. All they need to do is tap or wave the card in front of the machine, and the payment will go through.
What Devices Use the Contactless Payment Technology?
Contactless payment technology is not open to just credit cards and debit cards alone. There are other devices with the capability of contactless payment. It is possible to ingrain this technology into key fobs, stickers, wearables such as wristbands and wristwatches, and even mobile phones.
Is this Technology Secure?
Contactless payment technology is very secure. The fact that the payments are authenticated and validated with encrypted codes makes it a safer payment option than the magnetic stripe cards. Unlike the magnetic stripe cards that statically store data and are easy to clone, it’s much harder to hack or clone contactless technology.
Benefits of Contactless Payment Technology
One of the major reasons people go for contactless payment is the speed of completing transactions, making it suitable for people who are always on the go. A contactless card machine processes transactions very fast compared to EMV chip cards and mag-swipe cards. It only takes about 15 seconds to process the transaction while the others require more than double the time to do the same. Also, users don’t have to enter or disclose a PIN to complete their transactions, and they can use wearables to access this.
Is Contactless Payment Popular?
The use of contactless card machines is becoming common in the UK, Australia, and Canada, among many other countries where there are already millions of contactless credit cards in use. The UK alone has about 119 million contactless cards. Furthermore, one-third of the card transactions carried out in the UK are contactless.
Banks in the US are also issuing millions of credit cards that are contactless, and by 2021, it is estimated that the US will have more than 229 million contactless cards. Card transactions are also estimated to worth $111 billion at the same time.
The popularity of contactless cards in London spiked because commuters became used to “tap and go” when using public transport. This transitioned easily into the use of contactless payment options. We’ve also seen the New York subway using contactless payment technology for travelers. It’s only a matter of time before this sweeps across the whole city, just like it happened in London.
What Kind of Business is Contactless Card Reader Suitable For?
Contactless payment is suitable for all kinds of businesses that are into selling items with a value of less than £45. It makes the transaction quick and seamless. However, other businesses selling items with high value can also use contactless card payment, provided they are selling at a lower frequency.
How Does A Business Benefit from Using Contactless Card Machines?
There are many ways that a business can benefit from using contactless payment technology and, by extension, contactless card machines. The global business world is now very fast-paced. If you want to remain relevant, especially as a small business, it is vital to offer your customers exactly what they want. One thing that is of the essence now is time. Customers are looking for ways to save time, and this means they’re looking for the most efficient, easiest, and fastest way to make payment and complete transactions. In this case, this is a contactless payment.
You can increase the speed of transactions for a hassle-free and convenient payment by simply getting a contactless card terminal. This helps prevent long queues from building up at checkout points (which is seen as a time-waster). In the end, customers are happy to get their transactions sorted without long delays, and your staff is less stressed.
With contactless payment technology, you can keep your customers satisfied, which means they are likely to return. It can potentially lead to an increase in sales for your business as customers are sure of fast and convenient payment and can always come back.
Going forward, contactless payment methods will be the primary payment method as customers seek speed and convenience in completing their transactions. There are countless terminals, credit cards, and debit cards currently offering the contactless payment option, and this will only increase going forward.