The What, Why and How of Contactless Payments
Our ultimate guide to why your business needs to go contactless and how you can do it.

This small change in your business could make your customers spend 8-10% more each visit. What is the secret? It's contactless payments.

According to a 2019 study published in the International Journal of Economic Sciences, increasing customer spending doesn't have to be a matter of clever marketing or exploiting cognitive biases. Implementing contactless payment technology makes consumers spend an average of 8% more using credit and 10% more using debit.

What is Contactless Payment Technology

While contactless payment's effect on spending could be described as magical, it's a fairly straightforward technology. Contactless payment is any payment method that doesn't require contact between a customer and a merchant. More traditional payment methods, including magstripe debit and credit cards, require at least some degree of contact, even if it's limited to swiping a card through a terminal.

There are four primary types of contactless payments on the market today:

  • NFC-enabled Contactless Cards

  • Mobile Wallets

  • In-app Purchases

  • Digital Payments

NFC-enabled contactless cards utilize near-field technology to communicate information to a compatible point-of-sale terminal via a simple wave of the card over a reader.

Mobile wallets let consumers pay using their smartphones to transmit payment information to the point-of-sale terminal. Google Pay, Apple Pay and Samsung Pay are all examples of mobile wallets on the market today.

In-app purchases are exactly what they sound like: payments facilitated by an app, such as Grubhub or Uber.

Digital payments are payments made through a website or digital platform, such as Amazon.

Why Your Business Should Use Contactless Payment Technology

Naturally, the popularity of contactless payment has grown dramatically since the start of the pandemic. According to a study conducted by Mastercard, 79% of global consumers now use contactless payment methods, and almost all consumers surveyed plan to continue using contactless payments after the pandemic is over.

Unsurprisingly, there are plenty of reasons why contactless payment is so popular among businesses and consumers outside of pandemic-inspired hygiene concerns.

  • Speed: Studies have found that contactless payments are as much as 10 times faster than other methods of in-person payment, minimizing lines and maximizing efficiency for your customers.

  • Better Buying Experience: 69% of customers find contactless transactions more convenient than those involving paper money, and the reduced wait times that contactless payments allow often result in improved customer service.

  • Improved Customer Loyalty: 63% of customers would switch to a new  business because they offer contactless payments and 46% of customers say contactless payments is the most important safety measure they want to see stores follow. These metrics show customers are increasingly passionate about businesses implementing contactless payments, and the businesses that do so can reap the reward of high customer loyalty.

How You Can Adopt Contactless Payments for Your Business

Now that you're convinced that contactless payment is right for your business, it's time to implement. To start, you'll need an NFC-enabled reader. At PathPoint Merchant Services, we provide a selection of point-of-sale solutions that are NFC-enabled!

Outside of NFC-based contactless payments, consider allowing your customers to pay via online terminals or mobile. These methods allow for you to provide flexible payment plans to your customers and allow your customers to pay even if they forget their wallets at home. You can view our suite of mobile and online payment options here to better understand what the possibilities are for your business.

Once you consult with our team to get equipped with the necessary hardware and software for contactless payments, it's important to notify your customers of your new contactless payment options. Consider sending out an informational email or social media post instructing customers on how they can utilize and benefit from contactless payment options. The more customers that use contactless payment methods at your business, the more benefits both you and your customers can reap from this new technology!

With PathPoint Merchant Services' extensive suite of payment offerings, it's easy to implement contactless payments for your business. Whether your customers want to tap their cards at an in-person terminal, pay via their phone, or pay via an online dashboard, our team is here to make that easy for you to implement.

Check out our recent blog post for free tips on how to up-level your business during the pandemic!  

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