What are contactless payment benefits for businesses? According to a report, 62 percent of people have their wallets lost or stolen.
Imagine how difficult it would be if this occurred to you; how will you pay for necessities if someone steals your wallet and goes on a shopping spree?
Financial security is not the only potential problem when it comes to payment systems; individuals must also consider physical cleanliness.
Picture how many germs are on your credit or debit cards as you pass them back and forth between vendors, not to mention any germs on the card reader buttons when you authorize payment.
There are merely a couple of concerns with the transaction process. As individuals encounter challenges with other means of making payments online, they seek new solutions. There is already a possible approach which is contactless payment. You may want to understand how fintech companies business models work.
Here Are The Four Benefits of Contactless Payment Technologies
Today I’m going to share the four benefits of contactless payment technologies. The concept of contactless payment is to pay without making physical contact with the vendor.
This can be done with a tap-and-go payment card or even your smart device. Smartphones now have wallet features that allow you to load your credit card information so that you can pay in the same way that your tap-and-go cards do.
All you have to do is look for the contactless indicator symbol at the payment terminal, unlock your phone’s wallet, and hold your device about two inches from the terminal.
You can also use payment apps with unique QR codes and your card or bank account information linked to them. The firm can collect payment from you by scanning your QR code or having you scan theirs.
1. Convenience
You don’t need to follow prompts on the credit card reader or wait for the vendor to swipe your card and pass it back because you can also pay right from your phone.
Also, you don’t have to bother with carrying your wallet with you if you forget it at home you’ll still be able to purchase what you need.
Younger people nowadays choose businesses based on if their features are convenient to them, these tap and go functions are a table stakes need for 38 percent of consumers because they’re so convenient to them as payment devices don’t need to leave a person’s hand.
2. Security
Someone is less likely to leave their card somewhere because they never have to pass it over to a vendor. There is also less of a risk that their wallet will be lost or stolen if they don’t even need to bring it with them because they can pay with their phone.
After all, wallets are among the top five items we lose, and phones are also on this list. Isn’t that still a risk?
Even if we are more likely to lose our phones, if we lose our wallets, anyone who discovers them can use the cards within.
If they don’t require a PIN, phones and other smart devices use biometric passcodes such as fingerprint and facial recognition.
Even if you don’t have a passcode on the device, your electronic wallet or payment app does. This way, no one else can authorize your phone to pay because these payment methods never leave your hand.
3. Cleaner Option
This is one of the reasons why contactless payment exploded during the COVID-19 pandemic; at the time, 46 percent of consumers switched to using tap-and-go cards.
It makes sense because it is more sanitary; you never have to give your credit card to a vendor, and you don’t have to press button prompts on the screen.
We usually think of cash as dirty, but credit and debit cards are dirtier. According to a study by Lend edu, these cards had germ scores of 285 compared to 160 for dollar bills and 136 for coins.
Imagine how unsettling that would be during a pandemic or even just cold and flu season. With contactless payment, we can better limit the spread of those germs.
4. Faster Option
Finally, contactless options are speedier. It doesn’t seem like long ago that we shifted from swiping our cards to inserting them into a chip reader, but these can take up to 30 seconds for every transaction, and that time adds up. Tap and go only takes 13 to 15 seconds.
Contactless payment is even up to ten times faster than other methods, which would be a relief for a person at the back of the checkout line.
Believe me, the financial industry is constantly evolving to keep up with modern-day trends and consumer preferences.
Within a few years, we’ve already switched from popular chip reading cards to tap-and-go methods. Businesses are constantly looking for ways to improve the customer experience so that they’re more satisfied.
Conclusion
With the way the world has evolved, a good business plan would be to take your company to the next level by implementing contactless payment methods.
These methods are convenient, quick, and secure, and for those reasons alone, many businesses are expanding their payment options to include contactless funds.
Covid-19, which raised awareness about cleanliness concerns, is also a good reason to consider.