Due to their simplicity and safety, contactless card machine has overtaken all others in popularity after the COVID-19 pandemic outbreak. In the UK, contactless transactions made up about 90% of all credit and debit card transactions in 2021. Over the year, users of contactless technology conducted 180 contactless transactions totalling £2,293 on average.
When employing contactless payment methods, a cardholder can make purchases at a variety of retail locations without having to pull their credit card out and swipe it or insert it into a card reader. NFC (Near Field Communication) or RFID (Radio Frequency Identification) technology is the foundation of contactless payment systems. For contactless payment systems to function, radio frequency identification technology is used to wirelessly send data from one device, such as a smartphone or contactless debit/credit card, to the payment terminal.
Within the next five years, contactless purchases at Points of Sale will account for over half (53%) of all transactions worldwide, according to a recent Juniper Research report. With more than 50% of all transactions now being contactless, it is already widely accepted as the preferred method of payment in many countries.
The following guide discusses the advantages of incorporating contactless payment systems into your business.
Advantages of contactless card readers for small businesses
Contactless payments are beneficial for consumers. However, contactless payments also help retailers by allowing them to give customers a better in-store experience.
Healthier Interactions
Pandemics are happening more frequently and on a larger scale in the 21st century. Social isolation, mask-wearing, and sanitisation are widespread practices. The hygiene of your establishment and workers must be your top priority as a business owner. You need to create a setting where everyone feels secure and safe from possible health dangers. Additionally, your business will not operate well if staff are absent due to illness. Customers will also go elsewhere if they feel uneasy about your business. The demand for contactless payment systems has increased because of COVID. Shortly, the trend of fewer cash transactions per year will persist. The main reason there is less money around during a pandemic is that it is the ideal medium for viruses and bacteria. 94% of banknotes in circulation tested positive for germs, according to a 2002 survey. Currency that is contaminated with germs can support bacterial growth for weeks. Therefore, it makes complete sense that the most hygienic choice to protect both employees and consumers would be a contactless card reader.
Improved Security
For both customers and company owners, contactless payments offer a safe and secure checkout experience. Compared to conventional credit cards with magnetic stripes and pin-based authentication, contactless card readers provide better encryption and security. You can rest assured that your client’s data will not be hijacked by hackers regardless of whether they pay with a contactless credit or debit card or a mobile wallet like Apple Pay or Google Pay. To prevent data skimming and to give customers and company owners a more secure transaction experience, contactless payment uses NFC and RFID technology. Due to the rapid authorisation times provided by this technology, it is more difficult for fraudsters to obtain client credit card information without being detected by the store or other parties. Therefore, contactless payment is unquestionably a safe and secure choice for companies and customers who can make use of it anywhere that this technology is available.
Fast and Convenient
Everybody benefits from a quicker and easier checkout process when using contactless card reader. Buyers can avoid swiping their cards and entering their PINs by using a contactless card reader. Transactions happen much more smoothly because they can just tap the card against the terminal! The contactless cards integrated NFC technology streamlines the payment procedure. With contactless payments, business owners can save a lot of time by reducing transaction times and spending that time on other business-related tasks. The operational effectiveness of the entire firm is increased by offering contactless payment options. The adoption of contactless payment technology is significantly more convenient for customers and company owners alike!
Customer Satisfaction
The most innovative method of paying for products and services is contactless payments. In contrast to using cash or credit cards, it is a quicker and more practical option. The payment is processed instantly with contactless technology when a consumer just taps their card, smartphone, or wearable device on a contactless card reader. Faster checkout speeds correlate to a better customer experience by lowering discomfort from standing in lines and minimising abandoned sales.
Loyalty Programs & Apps
Did you know that firms began providing customers with loyalty programmes as early as the 18th century? At that time, companies were looking for a method to cut acquisition expenses while increasing client retention. It has long been a concept to raise profit margins while lowering ad expenditure. When loyalty programmes first entered the market, only the most powerful businesses could employ these kinds of marketing tactics. But loyalty programmes have developed over time and spread in popularity. Using e-commerce and contactless payments has made creating loyalty programs easier for everyone. You can easily implement loyalty programs with contactless card readers. Also, customer can use their card discounts given by banks when they purchase contactless payment methods like mobile wallets. It will positively affect your relationship with the client since they will receive bank discount when they buy from you.
Buy Now Pay Later Options
When the COVID epidemic began, the use of options for paying now and later has significantly risen. Time Magazine said that 45% of UK consumers use this choice every month. Customers can make smaller payments stretched out over time to pay for bigger purchases through businesses like PayPal, Afterpay, and Klarna. This payment method pairs well with mobile wallets and contactless transactions. Most customers use Buy Now Pay Later options instead of paying with a credit card if available. Overall expenditure and customer satisfaction have grown as a result. For your business to remain competitive, buy now pay later solutions are essential, as digital wallets and contactless cards continue to grow.