Aug 12

What is Contactless Payment?

Contactless payment has changed the way people shop. Click here for everything you need to know about it as a business.

In this modern age, digital is always the way to go. Digital technology became even more critical in the post-pandemic business world, helping companies automate processes and communicate and store information quickly and efficiently while avoiding the spread of disease. Among the many trends embraced by businesses today is a contactless payment system — a technology that allows customers to make financial transactions without physical contact with store personnel or even with the payment processor itself. 

What is Contactless Payment? 

A contactless payment system allows consumers to pay for a product or service simply by tapping a card, smartphone, or wearable tech device against a POS payment terminal. It can also be done through mobile apps, digital wallets, and credit and debit cards. These tap-and-go transactions involve various authentication protocols and features to minimize security risks and execute quick, efficient automation.

Contactless payments are becoming part of the norm as we adjust to the new normal. In fact, a study by Mastercard shows that 79% of consumers worldwide now prefer touch-free payments. 74% said they’d continue using it even after the COVID-19 pandemic

Today, restaurants, retailers, pharmacies, beauty salons, and other types of businesses use contactless payments to offer more options, prevent viral infection through the exchange of cash and cards, and deliver a safer checkout experience for their customers. Cashless transactions have a lot of benefits, both for consumers and company owners. We’d go so far as to argue that they’re the future of payment processing.

Contactless payment using a smartphone

5 Reasons to Use Contactless Payments

So, why exactly should you offer contactless payment at your place of business?

1. Better Customer Experience

Because of a contactless payment system’s ability to provide quicker, smoother transactions, businesses can service their customers more efficiently than ever before. It helps reduce wait times and long lines, and it removes some of the friction that shoppers experience when paying for their items.

Additionally, shopping cart abandonment can be reduced through touch-free transactions, as consumers are no longer required to carry cash, loyalty cards, and discount cards. In other words, the amount of cash they’re carrying on them isn’t a constraint anymore. The increasing popularity of contactless payments is an opportunity for businesses to stay ahead of the game by automatically providing benefits like points and discounts upon checkout.

2. Improved Accuracy

Since digital payment technologies are simpler, they contribute to workforce reduction and seamless checkouts. It takes less effort for a cashier to ring up a customer. So, miscommunication between staff and shoppers is less likely to happen. There’s no need for all checkout personnel to manually count money and operate cash register machines, so there’s far less room for error.

Although many small- to medium-sized businesses still rely on cash payments, more and more companies are investing in technology to make things convenient for them and their customers. This means they can serve more people in a shorter period while reducing the likelihood of mistakes and inconveniences. 

3. More Hygienic Transactions

The COVID-19 pandemic brought about considerable changes in consumers' preferred shopping payment methods. People have become more conscious about handling cards, cash, and coins. As a result, more have shifted to cashless transactions to limit person-to-person contact and reduce the risks of infection.

And these digital options are here to stay, even after the pandemic. A contactless payment system is hygienic, making it an excellent preventive measure against diseases. Moreover, it’s a preferred method for many shoppers as it provides an instant record of every transaction. It’s one less thing that the customer — and the business — need to worry about.

Woman shopping wearing face mask

4. No Extra Costs

Handling paper money usually comes with additional costs, like bank deposit rates and other cash processing charges. When you use electronic, contactless payments for your business, there are no additional processing fees, so you can lower your expenses and pass those savings along to the shopper.

You basically pay the same amount as with regular credit card transactions. Merchants just need to set up reliable card readers to offer effortless contactless payments to customers. For some providers, even contactless card reader updates come with little to no cost. What businesses and banks need to focus on more is system maintenance and educating consumers about contactless payments.

Using contactless payment with smartphone and POS system

5. Enhanced Security

There are many ways to protect your company from theft and burglary, and offering contactless payment options is one of them. Electronic payment technologies are protected against hacking attempts and fraud by issuing banks.

Through contactless transactions, businesses can lessen the chances of robbery and theft in cash register machines and their commercial properties. You can feel confident that your money is safe and that your customers can enjoy a quick, smooth shopping experience.

However, with ease of technology comes security and privacy concerns, so see to it that your system has encryption and data authentication features to protect sensitive information. 

Explore Contactless Payments and Take Your Business to the Next Level

In the post-pandemic business world, efficiency and processing depend heavily on contactless payment systems. Contactless payment options mean prioritizing safety, being sensitive to people's evolving needs, and keeping up with the latest technology. The thing is, installing the best system can initially be overwhelming. Fortunately, with the help of reputable professionals, you can install and maintain the best contactless payment terminal to improve your day-to-day operations. 

True POS is here to help you get your point of sale system up and running. A POS system can save you time and money, and provide your customers with a better experience. Reach out today for a free quote!

Back to All

Related Articles

Aug 20
5 Restaurant Marketing Tips for Boosting Revenue

Your restaurant isn't generating the revenue it deserves. Keep reading to learn how to step up your marketing game.

Read More
Jun 24
Must-Have Equipment for a New Business

Starting a company is a complex endeavor but with this shortlist of must-have equipment for every new business, you can tick a few things off your to-do list.

Read More
9 Summer Goals to Boost Sales

Boost your sales this summer with our top 9 revenue-increasing strategies to engage customers, build brand affinity, and convert them into purchases.

Read More