The Future with Contactless Payment

Contactless payment has evolved into an essential life feature for businesses in the new normal. Social distancing requirements highlight the importance of limiting or completely avoiding physical interaction. As a result, checkout processes in shops and online stores have shifted due to the increased demand for contactless payment options.

More people are going cashless

Based on a global consumer study by Mastercard, 8 out of 10 people are now using cashless payments. The American Express Company (AMEX) also reported an 11% increase in April 2020 among US consumers using contactless payment compared to August 2019

Additionally, fewer people are making cash withdrawals at ATMs. In Switzerland, ATM withdrawals fell by almost 50% between mid-March and mid-April. According to PostFinance, Swiss citizens made a quick shift to contactless payment methods at the onset of their lockdown.

How contactless payment works

With contactless payment, customers pay for items by simply tapping or waving a device at the payment terminal. Mobile wallets, or contactless payment apps such as Apple Pay and Samsung Pay, are popular examples of this emerging technology. These apps use near-field communication (NFC), which powers contactless payments through a type of radio-frequency called RFID. NFC enables the card or smartphone to communicate with the payment reader when they’re close together, usually 10 centimeters or less, avoiding any contact.

Though some business owners still hesitate with the technology because of security concerns, it’s strategically designed to minimize fraud. In a contactless payment, the data associated with the payment is encrypted unlike the magnetic stripe of traditional credit cards that are swiped on a terminal. The encryptions make it difficult to replicate the data and would take time and effort to even break through its security features.

Now is an excellent time for businesses to set up contactless payment capabilities. It’s a trend in business that will likely continue even after the global pandemic. Being able to offer this safe and secure means to pay also benefits business operations.

Here are 3 reasons to adopt this emerging technology in business:

1. Contactless payment enhances customer experience

Memorable customer service drives brand retention. By streamlining payment processes, businesses tap into a simple yet effective way to be remembered as a business that takes the health and safety of its customers and employees seriously, but also values the customer’s time.

Advertising a range of different payments helps cater to a wider customer base. Whether in-store or via digital platforms, offering contactless payment methods is one way of empowering customers to choose how they want to pay. Some businesses even implement self-service checkouts, a convenience welcomed by on-the-go individuals as time spent in a queue is reduced.

2. Contactless payment improves employee productivity

Contactless payment in business requires the necessary digital infrastructure to be installed. The added cost for equipment is one reason business owners hesitate to install the technology. However, making this investment could prove to be beneficial for boosting employee productivity in the long run.

By automating some parts of the business process, employees can focus on the tasks that require their presence, knowledge, and interpersonal skills. Gone are the days when sales associates need to run to-and-from the counter to answer customer inquiries.

3. Contactless payment opens up tech-integration opportunities

Tech-integration in business can open up a multitude of opportunities.

Contactless payment is just one of many emerging business techs that aims to streamline operations. But it could also be the first step towards more technology-driven changes. What may begin as faster payment systems in-store can transition to paperless receipts and menus, new rewards programs, and personalized marketing campaigns on mobile. With all these opportunities to tap into, businesses set themselves up to experience more growth than ever before.

Getting started with contactless payment

Successfully implementing contactless payment in business requires investing in a platform that can facilitate digital invoicing and payments. Through this platform, businesses will be able to collect payments faster.

Contactless payment opens up a multitude of business opportunities. By placing a premium on safety and security, they strengthen their brand customer experience, improve operations, and open up areas for growth.

Use Wemu to offer quick, easy, and contactless payments for your customers. In doing so, you equip your business to deliver faster results. Experience their services first-hand when you start your free trial today.

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