In the wake of the COVID-19 outbreak, more and more consumers are expecting to be able to pay for goods and experiences with contactless solutions. But why are contactless payments ideal for a post-pandemic world? Following the global pandemic, cash is out and touchless payments are in.
We look at the top reasons why a pandemic proves that you need to offer contactless payments..
Health and safety
Prior to the coronavirus outbreak, could you imagine the news of banks needing to burn all of their money? Yet that’s exactly what the Bank of Korea did back in March in their efforts to stop the spread of the virus.
And credit cards aren’t much better. Credit card issuers have long been toting that cash is notoriously germ-ridden. But today, those same claims are being made of credit cards that must be swiped, inserted or passed over the counter.
Look inside your wallet – how many of your credit cards have the contactless payment indicator on the front or back of the card? Did you even know that was an option?
Because of these concerns, issuing banks have responded well to consumer demands for NFC (Near-Field-Communication) enabled card replacements. If you have any without contactless capabilities, contact your financial institution for a replacement, as many banks have made it easy for cardholders to apply for one online.
Don’t get left behind if you don’t
In 2018, research predicted that by 2020, one-third of all transactions globally would be contactless. However, even prior to the pandemic touch-free payments had already been gaining wider acceptance. There are almost 50 countries where contactless payments represent at least a third of all face-to-face transactions. It should be noted that the global figures are distorted by the fact that the US market is lagging behind much of the world.
The statistics also show that the world is becoming much more comfortable paying with their mobile phones. Mobile phone payments account for a substantial portion of contactless transactions, and it is fast growing. Fast forward to October 2020. According to a recent survey, 79% of respondents worldwide say they are now using contactless payments, citing safety and cleanliness as key drivers.
Consumers and employees will be expecting it
Prepare to accept payments in multiple ways, this is so that each customer feels comfortable and safe. A few consumers are still fine with established transactions. However, more and more are no longer comfortable with handing over a credit card, inserting it into a reader, having to touch a pin pad that others are using, or signing a receipt.
Productivity and efficiency also take a hit with the increased safety protocols that employees are being tasked with in order to maintain these transactions. Contactless payment methods, like tap-and-go cards, digital wallets or online prepay avoid all of that. This is because they allow consumers to pay without physically touching anything in a store. This increases the safety for both your consumer and employee.
PaidYet is essential to help businesses get paid quicker and to make it easier and safer for their customers to make payments. Consumers and merchants can make and accept easy one-click payments without ever sharing their payment info with merchants.