What is Contactless Payment and Why is it Good for Small Businesses?
Many businesses have embraced a variety of technologies to operate more effectively since the COVID-19 outbreak. During this time, contactless payment has also continued to expand. Despite being around before the pandemic, contactless payment gained immense popularity during the public health crisis and has since taken over as the method of choice of payment for many businesses and customers.
Contactless payment has gained customers from a variety of businesses, including grocery stores, flower shops, and beverage shops, in addition to restaurants and cafes.
So, what is Contactless Payment?
Contactless payment is a no-touch payment transaction that allows people to pay for goods and services without having to swipe or hand over their credit or debit card to a cashier. Consumers complete transactions by tapping either their card, smartphone, tablet, or smartwatch against a contactless point-of-sale (POS).
Contactless counters reduce the time of interactions and also speed up service. This eliminates the need for customers to wait for service which also gives staff members more time to assist other consumers.
Because the payment method is entirely contactless, there is no need to invest in costly cash registers or deal with the nuisance of accepting cash or coins. Businesses can accept payments using their existing card terminal, just like they would any other card payment.
Numerous factors have contributed to the growth of contactless payments. In this blog, we will go over some of the most significant advantages of contactless payment for small businesses.
Benefits of having a Contactless Payment System
Convenient
With contactless payment, customers can leave their credit or debit cards safely in their wallets. This method is convenient because users do not have to use a physical card and then replace it in their wallet or purse. Furthermore, if a consumer opts to use a contactless payment method, the pay is instant, saving the time it takes to insert a card into a reader and wait for the card to process the transaction.
Enhanced Security
Contactless payment also boasts enhanced security measures. Although the risk of fraud or theft appears to be much higher because all the user needs to do is tap the card onto the reader. Unique numbers are used for transactions that don't correspond to card numbers, built-in security ensures that the same transaction doesn't happen twice accidentally and that, the information and numbers associated with the card cannot be decrypted if intercepted. Additionally, if the limit is set to a small amount, such as $200 in Australia and $250 in Canada, protecting customers from unauthorised purchases.
Sanitary
Through contactless payment, customers can conduct transactions without having to actually interact with the other party. This allows users to avoid physically offering their debit or credit card to a cashier or touching a pin pad, whether they are using self-checkout options or checking out with a cashier. This feature was a major contributing factor to the surge in the popularity of contactless payment during the pandemic.
Better Customer Experience
When a customer is not restricted by the amount of cash they are carrying and the payment process is efficient. Additionally, as the average transaction value (ATV) rises, businesses may see an increase in sales and a decrease in abandoned sales. Unless the customer requests it or the transaction has a higher value, the majority of contactless transactions do not require verification or the printing of a receipt upon authorisation. This results in an increase in overall customer experience and also helps small businesses.
In this way, having a contactless payment system can benefit both the customers and small businesses. If you are looking to grow your business, POSApt and its accompanying online ordering system can provide businesses with multiple payment systems, that can cater to a wider array of customers.
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