You probably don’t give much thought to your business’s credit card terminals—but maybe you should. Millions of consumers are now equipped with contactless-enabled debit cards, credit cards and other contactless payment devices, and adoption is likely to grow rapidly with the emergence of mobile phone-based NFC (near-field communication) payments.
At retailers outfitted with contactless readers at the point of sale, customers simply wave or tap their card or other payment device to pay for their purchases. The benefits to both consumers and retailers are significant. Consumers benefit in several ways from being able to use contactless payments:
Convenience and Ease of Use
Instead of inserting a card into a reader and entering a PIN, customers simply wave their card in the proximity of the reader. They don’t have to fuss with aligning the card correctly or remembering a PIN.
Safety and Security
Because they employ the same advanced security features as chip and PIN transactions, contactless payments are just as safe and secure. Additionally, there is less chance that the card will be lost or forgotten during the course of the transaction, since it never leaves the customer’s hand. This also reduces the opportunity for a dishonest employee to steal the card’s magnetic-stripe data through “skimming,” the practice of fraudulently procuring card data with a hand-held electronic device.
Flexibility of Alternate Form Factors
Contactless payment technology doesn’t have to be delivered on conventional plastic cards. Contactless technology is increasingly available to consumers in other forms, such as mini-cards, stickers, key fobs and even mobile wallets that turn contactless-enabled phones into payment devices—reducing the need to carry a physical wallet at all.
Retailers benefit, too:
Industry research has shown that contactless transactions are faster than both cash and conventional chip and PIN-card transactions. This reduced transaction time can result in shorter queues, increased revenue and better customer satisfaction. Because of the increased throughput at each point-of-sale, fewer personnel may be needed during peak times.
Studies have also revealed that consumers with contactless payment devices use them often and exhibit greater loyalty to retailers that accept them. Retailers that accept contactless payments are well-positioned to benefit from the emergence of mobile phone-based payments, which are predicted to be an especially popular payment choice among young and affluent consumers.
Technology Integration Opportunities
The ability to accept mobile phone-based contactless payments opens up a multitude of marketing opportunities by improving integration with existing loyalty programmes, as well as enhancing the opportunity to utilise personalised mobile couponing and location-based marketing to target consumers inside or nearby a retail location.
To find out how to begin accepting contactless payments, contact your relationship manager or visit firstdata.com.au.