Contactless payment systems are one of the more recent developments in the digital payments industry. Making use of Near-Field-Communication systems that you find in all recent phones, contactless payment methods let you make payments through your phone. The global leaders for this technology include Google Pay, Apple Pay and Samsung Pay—pushing forward the growth of proximity mobile payment transactions to nearly $314 billion.
There are numerous advantages of using contactless payment systems for both consumers and vendors alike, some of which we’ll discuss here.
The Advantages to the Consumer
Contactless payment systems have the potential to do away with cash and card transactions altogether. This technology is to the credit card, what the credit card was to cash—you can basically walk around without any form of currency on you. With respect to the security and safety, contactless payment methods significantly reduce the risk of financial fraud because there’s no way anyone can get into your financial accounts without touching your phone.
Additionally, contactless payments are much faster because you can just swipe your phone over a contactless POS without having to wait in line for long periods of time. Because of the speed, safety and efficiency of contactless payment systems, many consumers are actually demanding that their service providers adopt the technology for an improved checkout experience.
Benefits to the Vendor
According to statistics, nearly 1.8 billion phones around the world were NFC enabled by 2018—a number that’s probably increased by now. According to surveys, nearly 56% of all financial transactions across the US will become contactless—a number that’s already at 96% in South Korea. Clearly, the consumer is moving toward greater adoption of contactless payments and it will only make your services much more attractive if you follow suit.
There are also plenty of efficiency gains made through contactless and digital payments. The transactions are instantaneous, you can implement self-service checkouts in your stores and you can probably serve more customers within the same physical space. Statistics indicate that digital payments in general are 57% cheaper than conventional payment processing methods, while McDonald’s has already demonstrated how self service can increase revenues.
Contactless payment methods through phones, is the next step in the improvement of financial transaction processing. The methods are safer, faster and very convenient for the consumer. The technology also allows vendors to improve the customer’s shopping experience by giving them greater control over their transactions and eliminating redundancies at their checkout lines.
If you’re looking to implement contact payment systems at your stores you should speak with UIC today. We are a leading developer of semi-integrated payment systems, secure payment software and contactless payment solutions. Get in touch with us today for more information.