Contactless Payments – Advantages for Businesses and Consumers
The COVID-19 pandemic has caused disruption to numerous industries, and the payments industry is no exception. For fear of becoming infected with or spreading the virus, consumers are preferring to use mobile wallets, “tap and go”, and other contactless payment options.
Contactless cards are the safest and most convenient way to make everyday purchases, and are quickly being implemented by businesses and consumers.
What are Contactless Payments?
Contactless payments are payments made by a consumer without his/her credit card or mobile device coming into contact with the POS (Point-of-Sale) system. Based on RFID (Radio-Frequency Identification) or NFC (Near Field Communication) technology, this innovative form of payment makes it possible for the POS system and card, smartphone, or other device to communicate. When using this payment method, consumers bring their device near the POS system. Then a notice is received, such as a checkmark, a green light, or it beeps, to indicate the payment was successfully completed. The best part is that consumers don’t need to input a PIN (Personal Identification Number) or sign their names.
Examples of Contactless Payments
Contactless payments are made via several payment methods. Two of the most common forms of payment that a consumer can use to pay for good and services include:
- Tap and Go – With this method of payment, consumers wave or tap their cards over the POS system. However, the credit or debit cards used must be NFC enabled.
- Mobile Wallets – Consumers can store their financial information in “mobile wallets”, which are accessible through apps on smartphones or other devices, such as smartwatches. When using this payment method, consumers either scan a QR code (a 2D version of a barcode), or tap their phones. Some of the most common mobile wallets are:
— Mobile Banking Apps – Payments are made by scanning QR codes or through money transfers.
— Apple Pay – Consumers make payments by holding an Apple device, such as a smartwatch or iPhone over the POS system, while placing a finger on the Touch ID button.
— Android Pay – Payments are made by using Google’s mobile wallet. Consumers open the Android Pay app on their NFC enabled device and the device over the POS system.
Contactless payment options offer many advantages to the businesses that offer them, and the consumers that use them.
Advantages of Contactless Payment:
- No Additional Cost – Businesses pay the same fee whether processing traditional credit cards or by using a contactless payment system.
- Enhanced Consumer Experience – Payments made through a contactless system is quicker, easier, and more convenient.
- Improved Efficiency – Contactless payments are far more efficient than traditional methods. This reduces the amount of time spent counting cash or operating a credit card machine.
- Fraud Protection – Contactless payment technology is encrypted and secure, which decreases the risk of being hacked.
- Convenience – Consumers won’t need to carry large amounts of cash or numerous credit cards to make a purchase.
- More Reliability – The chip-enabled technology on credit cards is encrypted and more secure than other forms of payment.
- Easy to Use – Contactless payments allow for quicker transactions. Consumers also don’t have to input a PIN or sign their name.
- Loyalty Programs – Many banks offer incentives when using contactless payments. Additionally, the majority of loyalty programs automatically give loyalty points or adjust discounts during payment.
Why Media Payments Group?
Using a contactless payment system will provide many benefits to your business. Customers will feel better protected – financially from fraud and physically from the Coronavirus – if they can use a touchless system. Adopting this form of payment can help to increase your customer base and improve your business long-term. Media Payments Group (MPG) offers a comprehensive payment processing system that gives real value to your business. MPG understands your business and can provide POS solutions so your business can start accepting contactless payments now.