Business owners aren’t the only ones trying to figure out how to navigate life during coronavirus. While many states are lifting shelter-in-place orders and business restrictions, consumers remain wary of going back to business as usual. Recent studies show that half of all Americans are still worried about the health of their family, and it’s affecting how they shop, eat, and more. One of the new trends that businesses can focus on to help alleviate fear among customers is contactless payments, which have shown a 40% jump in growth among consumers in the first quarter of 2020 alone. Here’s everything you need to know about contactless payments for your business.
What are Contactless Payments and Why Now?
Contactless payments utilize NFC technology, enabling customers to simply tap their contactless card or mobile phone to your contactless-enabled payment terminal to make a payment. Customers need to have a payment app such as Apple Pay, Google Pay, Samsung Pay, or FitBit Pay in order to make contactless payments with their mobile phone.
Prior to the COVID-19 outbreak, contactless payments were not all that popular in the United States compared to other countries, with only about 10% of consumers using the technology. However, since the outbreak, that number has grown significantly due to the fear that people can become infected with coronavirus from coming into contact with frequently touched items, including cash and payment terminals.
COVID-19 Concerns Are Driving Demand for Contactless Payments
As we mentioned above, Mastercard has seen a 40% jump in contactless usage over the last several months, and they’re not alone. A recent American Express survey showed that people are less likely to use cash or swipe/dip a credit card now than before the COVID-19 outbreak, and 58% of people who have used contactless payments previously, now say they are more likely to use contactless payments than before. Meanwhile, a separate study by NMI showed that 30% of consumers have started using contactless payments for the first time and 70% of those people plan to continue using contactless, even after the COVID-19 pandemic has passed.
Why Contactless Is Good for Small Businesses
The adoption of contactless payments is great for small businesses for several reasons:
- Knowing that a local business accepts contactless payments can help boost customer confidence during coronavirus and increase the likelihood of them returning
- Contactless payments are much faster than other types of payment transactions, meaning you can keep lines short (good news for social distancing) and increase throughput
- Contactless payments are secure, thanks to dynamically encrypted NFC technology, meaning there’s less chance of fraud and chargebacks
Is Your Business Equipped to Accept Contactless Payments?
If you are using any of SpotOn’s point-of-sale systems or payment terminals, then yes, you are already set up to accept contactless payments, including Apple Pay, Google Pay, Samsung Pay, and FitBit Pay.
If you are not yet partnered with SpotOn, if you do not have a contactless payment terminal, or if you're not sure, we are here to help. SpotOn offers a variety of hardware payment solutions, all of which accept contactless payments, and our team of experts will be happy to help you get set up with the solution that makes sense for your business. Best of all, we’re here with 24/7 in-person support to answer your questions and get you set up ASAP.