What your customers need from contactless payment systems

Almost everyone today uses some form of electronic payment system, whether it be a debit or credit card, or an app on their phone. Increasingly, people are using contactless payment systems, which allow you to pay for items by simply waving your device near a receiver. While these systems are convenient and fast, they also have some drawbacks. In this blog post, we’ll discuss what customers need from contactless payment systems and how banks can provide that functionality.

1. Why is contactless technology important?

1.1 The need for speed

One of the primary draws of contactless payment technology is its speed. Faster transactions enabled by contactless solutions can assist brick-and-mortar stores in regaining customers who have switched to e-commerce platforms due to long lines and slow checkouts at physical stores.

The contactless payment method optimizes transaction speed and allows businesses to serve more customers in less time by removing friction at the point of sale. Contactless payments can effectively reduce the average time spent at a POS terminal by 30 to 40%, making them a popular choice among both businesses and customers.

1.2 Convenience

Customers expect a smooth sailing experience at every step of the way in today’s dynamic business environment. Customers today prioritize their convenience and choose their preferred service provider accordingly.

Keeping this in mind, businesses today must be pragmatic when developing innovative solutions for their end users. Contactless technology exemplifies this strategy by eliminating queues and enabling quick transactions to provide customers with the best possible experience.

1.3 Safety and security

By reducing the number of total steps involved, contactless payment technology reduces the average length of a transactional process. Because it does not require the input of a pin or a password, contactless technology has raised concerns about the safety of user privacy, which has been a major barrier to widespread adoption.

However, according to reports, contactless payment solutions are less vulnerable than card-based payment methods. Contactless technology is a more secure payment option because there is no need to transmit the user’s information to the POS terminal.

2. Advantages of Contactless Payment

2.1 Ease of use

The fastest transactions and shortest checkout lines are the two biggest benefits of contactless payment. Cash is never an issue at the register. Additionally, you save yourself the trouble of PIN entry.

2.2 Safer transactions

Compared to other forms of payment, tap-to-pay technology is more dependable and secure. Chip technology safeguards you against fraudulent purchases through encryption and dynamic data technologies.

2.3 Loyalty benefits

Most store loyalty programs are integrated with the tap-to-pay smartphone you use to make payments. When you pay, they automatically give you discounts and loyalty points. When you use the contactless payment feature, some banks will give you cashback or other incentives.

2.4 The flexibility of payment devices

Bulky wallets can be retired when you go cashless. All you need to make payments is an NFC-capable smartphone.

Conclusion

When customers are ready to pay, they don’t want any barriers in their way. That’s where contactless payments come in – by making it easy and effortless for customers to pay, you can make sure they have a positive experience with your brand that will keep them coming back. If you’re thinking of implementing contactless payments, we can help you get started. Reach out to SmartOSC Fintech today and one of our experts will be in touch to discuss your options.