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Payments

6 Reasons Why Rising Demand for Contactless Payments is Good for Everyone

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Topics: Payments

November 2, 2020

Even though "contactless payments" is a concept we hear every day now, contactless technology has been around for at least 20 years. Previously, contactless technology wasn't as popular in the United States as other countries, with only about 10% of consumers using it, but today we are experiencing a surge due to the COVID-19 pandemic. In fact, at this point, there's no doubt that contactless payments are here to stay, with 74% of participants in a recent study by Mastercard stating that they will continue to use contactless payments post-pandemic. With that in mind, here are six reasons why the rising demand for contactless payments is good for everyone—customers and businesses alike.

1. Contactless Payments Prioritize Customer and Worker Safety

Contactless protocols were ranked #1 by consumers as the most important feature to help them feel safe while shopping, according to a recent consumer survey. There is a latent fear of getting infected with coronavirus from contact with frequently touched items, including cash, cards, and payment terminals. Contactless eliminates physical interaction while offering quick transaction speeds and an extra layers of security. By offering your customers contactless payment options, you prioritize the customer experience while ensuring that they do everything possible to lower everyone's risk of infection.

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2. It Offers a Seamless Experience

Contactless payments are much faster than other types of payment transactions, which means small businesses can keep lines short (good news for social distancing), avoid overcrowding, and increase throughput. With just a tap or wave of their phone, your customers can pay and leave fully satisfied. Customers will spend less time digging through their wallets to find their card and entering their PIN, which saves a lot of their time. Shortening wait times is a definitive benefit that outlasts the pandemic, and customers appreciate it big time.

3. It Ensures Secure Payment

Thanks to dynamically encrypted NFC technology, paying with a contactless method minimizes the chances of fraud and chargebacks. This is great news for both your business and your customers, as data breaches and fraud are not only costly, but extremely time-consuming and frustrating to resolve.

4. It Allows You to Take Their Business Online

The contactless experience doesn't start or end with payments. Customers will expect that their buying experience is optimized. Taking your business online allows you to offer your goods and services while eliminating human contact from ordering to fulfillment. For example, dine-in ordering service enables customers to go to restaurants, scan a QR code at the table, and then order and pay right from their phone, without ever having to touch a menu or a credit card. Similarly, online ordering and eCommerce websites are preferred buying experiences for customers who want to order and pay from the safety of their home. These methods provide comfort while also decreasing the time spent in locations.
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5. It Keeps Customers Coming Back

While contactless payments already enhance the buying experience, it also helps build trust and loyalty, which can be further amplified with a loyalty program. Customers still expect small businesses to keep their loyalty promises regardless of how they shop. In many cases, contactless payments allow full integration with loyalty programs to help small businesses capture information and, consequently, develop closer relationships with the customers and keep them happy. When combining online ordering, contactless payments, and loyalty programs, business owners can predict, personalize, and profit from future transactions.

6. Contactless Keeps Evolving

As mobile payment apps become more widely used, it's no surprise that tech companies are incorporating contactless technology into more smart devices. Smart speakers and smartwatches are just the start, and customers will continue to look for new ways to make purchases that fit into their busy lives, whether it's while they are stuck in traffic, preparing a meal at home, or anything else. At the end of the day, it all comes down to contactless payments evolving to customers' needs and making everyone's life faster and easier.

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