Ever thought about how the benefits of contactless compare to traditional chip and PIN?
Let's take a look at how popular contactless payments have become and why it’s a great option to offer to your customers. In March 2014, the UK Cards Association announced that monthly spending on contactless cards, as published by My Customer, had exceeded £100 million for the first time. In July 2016, there were 92.1 million contactless cards in issue in the UK, with 240.4 million contactless transactions made in the same month.
At Payzone, we keep our finger on the pulse in terms of technology, so all of our card terminals are contactless – but what’s the hype? What can contactless payment bring to you and your business?
1. Less time queuing
How many times have you decided to abandon your purchase solely based on the size of a queue in a shop? Contactless payment aims to solve this issue, reducing transaction times to a fraction of a second, as opposed to the time you would spend entering your PIN and waiting for the configuration of card systems. Contactless payment is a sure-fire way to serve more customers and process more transactions.
2. Simple set up
Contactless terminals follow the same process as installing the traditional chip and PIN model. Debit transactions with contactless cards could actually save you money, costing less per transaction than chip and PIN. You’ll also be saving on paper, as receipts don’t necessarily have to be printed off unless requested by the customer.
3. Customer satisfaction
With the incredibly fast adoption of contactless payment, more and more customers are treating it as the norm. If you don't meet customers' expectations for faster, more convenient payment options, you could lose their business. According to a report by Smart Card Alliance, the ease, speed, and convenience to consumers of paying at a merchant location accepting contactless payment makes them more likely to return to that merchant.
4. Secure transactions
Above all else, contactless technology is secure and performs impressively when it comes to fraud. Fraud losses on contactless cards in the UK remain consistently low and, according to the Smart Payment Association, represent just 0.02% of all card fraud. Payment terminals, such as Payzone’s range of card machines, uses the latest PCI DSS compliant technology.
5. Better sales, more often
Customers who use contactless spend more than those who pay with cash, so offering contactless payments could increase the overall value and frequency of purchases per customer.