Among the user-friendly payment systems existing today, the most popular are those cards where users need to just tap the card in front of a screen. Gone are the days when you inserted the chip-enabled cards and waited for a pin to validate the request through the authorized holder. The contactless cards have made a world of difference, especially during checkout. Typically, it talks about the ease of use, meaning that customers can complete the payments quickly and the stores have a reason to make profits with repeat customers. Besides, these cards talk about convenience for those customers’ wallets back home. Wondering how to use the card without carrying it in your wallet? Well, the data on the cards can be securely stored in the phones as tokens for making payments with ease.
FAQs on contactless payments answered:
No wonder consumers are fast adapting to using contactless payment modes whether it is for the daily trip to the grocery store or during commutation. If you are yet to use NFC payments, here are 8big questions answered.
What are contactless payments?
Contactless payments refer to the wireless transaction of money in which the customers approve the purchase by taking the device near the POS device of the vendor. Customers need not touch any device or insert a physical card onto it to pay.
What are the benefits of contactless payments?
Contactless payments have added speed to the market from the POV of the consumer and the owner. So, they offer significant benefits to all stakeholders. A majority of consumers prefer the convenience and speed of these payments and prevent the hassles of swiping their cards, especially for low-value financial transactions. A wide range of retail segments has benefited from these cards through increased speed for every transaction and higher customer convenience.
Why should stores accept contactless payments?
That is one question that several consumers ask and the shortest answer is the growing popularity. Research reveals that over 30% of US consumers have already switched to contactless from physical cards and over 40% of consumers prefer shopping at stores with contactless POS. Data also reveals that over 50% of US consumers are expected to continue using contactless cards. There may be several other reasons for accepting contactless payments.
What are NFC payments?
NFC payments are a type of contactless payment using near-field communication technology or NFC to exchange data between payment devices and readers. The NFC devices need to stay close to each other during payments to complete the payment. They are secured, encrypted, and, complete the checkout process speedily.
Is contactless payment technology more suitable for credit and debit cards?
Contactless payment technology is one of the features to be added to any payment card, whether debit or credit but the choice depends on the business strategy and the issuer.
How can retailers begin accepting contactless payments?
Retailers looking forward to using contactless payments need to get ca POS terminal with NFC technology. If you have already moved to an EMV-ready device, the chances are that they might have NFC capabilities. When buying POS software, try to find out whether it has the hardware needed to accept contactless payments. The simplicity and the speed of contactless payments come with added considerations; customers can pay from any point inside the store, implying that the retail point of sale systems can now be everywhere and not just at the cash counter of the store.
How should you evaluate contactless payment processors?
When choosing a payment processor, you need to tap on the following options:
- Technology breakdown and the solutions are far from simple. Choose hardware for payments and a software provider with excellent resources and support that may resolve the issues that may arise.
- When getting a processor for a commerce platform, make sure it supports omni channel strategies, connecting the retail shop to the online store.
- If you want to discover the business trends, make sure the POS device provides revenue reports and other retail metrics.
What is the cost of switching to contactless payments at the point of sale?
There is a reasonable cost for merchants trying to accept contactless payments but a lot depends on the current infrastructure and the solution. Merchants need to contact the vendor to know the exact costs.
It may be hard to please customers and embrace the latest technology. A lot depends on the clientele of your business. If you are curious about contactless payment terminals read the FAQs above and decide if it is right for your business needs.
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