Payment Processing
What are Contactless Payments?
Contactless payment is a secure method for consumers to purchase services or products using a credit card, debit card, or other payment device using RFID (Radio Frequency Identification) and NFC (Near-Field Communication). NFC technology allows transaction communication between two electronic devices to transmit data over radio waves.
There are two main types of contactless payments:
Mobile Wallets – Payment apps, such as Apple Pay, let customers store credit card information and personal information in a mobile wallet on their NFC-enabled phone. The customer types a PIN into the app while standing near the POS card reader
Contactless Cards – Credit cards or debit cards with an embedded NFC chip enables payment transmission without contact. The customer taps it on the screen of the POS card reader
There are two main types of contactless payments:
Mobile Wallets – Payment apps, such as Apple Pay, let customers store credit card information and personal information in a mobile wallet on their NFC-enabled phone. The customer types a PIN into the app while standing near the POS card reader
Contactless Cards – Credit cards or debit cards with an embedded NFC chip enables payment transmission without contact. The customer taps it on the screen of the POS card reader
Why Contactless Payments are the Way to Go
The COVID-19 coronavirus pandemic has changed the way consumers shop and pay for products. Approximately 3/4 of US consumers prefer to completely skip the signature step during the payment process as an initiative to stay safe. As customers are beginning to visit physical stores, businesses and their partners are implementing the latest safety protocols to help ensure the safety of their customers. In addition to sanitization procedures, facemask recommendations, and social distancing markers, companies are implementing contactless payment technology as an additional safety measure.
Prior to the start of the coronavirus pandemic, banks such as Wells Fargo, Bank of America, and Chase had begun to implement contactless technology to reduce touchpoints for their customers. Companies that use contactless payment options are seeing an increase in transactions. A company that chooses not to accept contactless or mobile payments is losing potential sales.
Benefits of a Contactless Payment Method
Advanced technology allows a company to accept contactless payments by allowing the customer to pay by tapping or waving their electronic device or credit card near a Point-of-Sale (POS) payment terminal.
Quick and accurate payments Touchless transactions No PINs required Streamlined payment system
Increased customer satisfaction Fast checkout process Increased sales/revenue Efficient and secure transactions
Less spread of bacteria Global payments Can be connected to customer loyalty programs
Enhanced Security for Any Company
Because contactless payments use the small, square computer EMV (Euro, Mastercard, and Visa) chip on your credit card, your bank account is more secure. This has helped reduce the risk for identity theft and fraudulent transactions. Additionally, this type of payment does not transmit personal data, including the cardholder’s name, email address, or security code. Also, when using a mobile wallet, the cardholder is also required to enter the password to open the app.
Access Global Payments Faster, Easier, and More Secure
When initiating contactless payment systems, businesses have several choices from which to choose. The best POS system option depends on the company’s size, budget, and preferences. To reduce the costs the often accompany setting up a new POS system, a smaller company generally relies on mobile and app-based payment solutions.
Businesses look for the experience of fast and efficient ways to send/receive payments, make money transfers, and monitor transaction fees. Vendors and consumers both need a way of making and processing payments that are easy and convenient. Mobile payments offer a secure way to purchase products and/or services online. With this type of pay option, consumers are easily making more purchases, thus increasing businesses’ level of sales.
Mobile Wallet Solutions – With the advancement of technology and global markets becoming more integrated, having the access to transfer funds has become critical. Allowing consumers to purchase goods or services from any location without physically being in the store benefits everyone involved. Using a mobile wallet is more secure and reduces the risk of theft. The consumer does not have to carry bulk cash and credit card details are securely stored in the cloud of the mobile device. Mobile
Payment Providers – Mobile payment providers allow sending and receiving money (cash transfers) through mobile devices. Many credit card, financial, and mobile communication companies, such as Google and Apple, have implemented this type of contactless pay system. With this service, consumers can make purchases and the vendor can receive payments in near real-time. This opens up a wide range of opportunities for the consumer as well as the business. The processes of selling and buying become less complicated and less overwhelming.
Access Global Payments Faster, Easier, and More Secure
When initiating contactless payment systems, businesses have several choices from which to choose. The best POS system option depends on the company’s size, budget, and preferences. To reduce the costs the often accompany setting up a new POS system, a smaller company generally relies on mobile and app-based payment solutions.
Businesses look for the experience of fast and efficient ways to send/receive payments, make money transfers, and monitor transaction fees. Vendors and consumers both need a way of making and processing payments that are easy and convenient. Mobile payments offer a secure way to purchase products and/or services online. With this type of pay option, consumers are easily making more purchases, thus increasing businesses’ level of sales.
Mobile Wallet Solutions – With the advancement of technology and global markets becoming more integrated, having the access to transfer funds has become critical. Allowing consumers to purchase goods or services from any location without physically being in the store benefits everyone involved. Using a mobile wallet is more secure and reduces the risk of theft. The consumer does not have to carry bulk cash and credit card details are securely stored in the cloud of the mobile device. Mobile
Payment Providers – Mobile payment providers allow sending and receiving money (cash transfers) through mobile devices. Many credit card, financial, and mobile communication companies, such as Google and Apple, have implemented this type of contactless pay system. With this service, consumers can make purchases and the vendor can receive payments in near real-time. This opens up a wide range of opportunities for the consumer as well as the business. The processes of selling and buying become less complicated and less overwhelming.
The Rise in Contactless Payments
Over the years, contactless payments have steadily increased in Canada, Europe, and in some countries around the world, however, U.S. consumers have trailed behind them. Since the coronavirus outbreak, consumers have begun to use more contactless credit card payments, Google wallet payments, and other mobile application payment services.
Social media has played a large part in providing the content for customers, business owners, and other merchants needed to identify the types of available payment technologies.
All users, including credit card companies, retailers, business services, and communications providers, are now seeing the benefits of contactless payments. Finding an alternative approach to staying safe while increasing productivity and providing easy accessibility to money transfer options has become a seamless pay solution for in-store, e-commerce, and mobile devices.