Last year, we saw the U.S contactless payment sector making major strides.
Capital One launched its new reward credit card, embedded with contactless technology, making it one of the first cards of its kind. Dual interface credit cards were introduced which allowed customers to make payments either using EMV chip or through a specialized contactless chip. The number of merchants accepting contactless payments almost tripled in comparison to 2014.
Slowly but gradually it seems, that we, as a nation, are getting there – we are closing on a tap-and-go enabled economy.
So what’s really in there for retailers—what’s the prize inside?
Should retailers just start accepting contactless payments through emv contactless reader or other such devices because everyone else is doing so and be a part of something fashionable, something cool? Or, does it allow them to be a part of something truly special?
We say, after reading this, you should decide yourself…
Your customers are demanding it from you
Yes, they truly are. You just have to take a closer look at your sales records. Your customers are keen to go contactless, as exhibited by their recent spending habits, where they have spent more using near-field communications and other contactless technologies.
And when you offer your customers what they are keen at, you only make them happier.
Surely you want your customers to feel good about your business, don’t you?
Contactless payments reduce queue wait times
The technology is famously nicknamed tap-and-go for a reason. It really makes it convenient for you and your customers to perform a transaction, all within 15 seconds. An EMV transaction on the other hand roughly takes 30 seconds, and a cash transaction even more.
This way, by accepting contactless payments, you can reduce queue wait times and provide your customers with optimal shopping experience.
They (the customers) are more likely to return
By offering the convenience of contactless payment to your customers, you get to build a loyal following. This is not just our own findings, but even MasterCard agrees with us.
Loyal customers mean more repeat business and improved cross-sell opportunities.
It allows you to structure integrated marketing campaigns
Accepting contactless payments through mobile based apps, opens up myriads of marketing opportunities. You can integrate the payment system with loyalty programs. You can leverage mobile couponing and you can also incorporate geo-based mobile advertising to target customers on a more personalized level.
So what is your take on accepting contactless payments? Is it worth it or just another of those passing vogues?
Let us know your thoughts in the comments section below.
A BONUS read: How mobile-based contactless payments work?