Contactless payments are made by tapping your contactless card or a device over a contactless card reader, which then processes and accepts the payment. In recent years, the benefits of contactless and digital payments have become increasingly popular with shoppers and businesses alike, to the point where many people no longer carry cash with them.
Contactless cards are by far the most popular means of contactless payment. However, payments through smartphones with secure contactless systems, such as Apple Pay or Google Pay, are also becoming more popular. In addition, the use of contactless-enabled fobs or wearable devices, such as smartwatches can be used for contactless payments.
With a range of benefits, such as faster and easier transactions, increased security and fraud protection and loyalty benefits for users, it is unsurprising that contactless payments have become essential. However, are contactless payments truly better than other payment options, such as chip & pin? Below we will cover some of the pros and cons of contactless payments, so you can make an informed decision.
Contactless payments boast several advantages to both consumers and businesses compared to traditional payment methods. So, what are the advantages of paying for your shopping with a contactless payment?
Ease of use – Contactless payments have without a doubt made paying an easier process. Contactless cards are a fast and convenient way to pay for your shopping and are accepted in most major stores. All users have to do is simply tap their contactless card against the reader and pay in a matter of seconds.
Safer transactions – When contactless payments were first introduced in 2007, many people questioned how secure it was. However, just like chip & pin, paying with contactless payment is safe and secure. The chip technology protects users from any fraudulent purchases through encryption and dynamic data technologies. Certain contactless payment methods also set a limit on the transaction amount. In addition, there can also be a limit on the number of times you can use contactless payments in a day.
The flexibility of payment devices – In addition to making transactions quicker, contactless payments provides consumers with added convenience, thanks to the range of payment devices. Contactless payments aren’t restricted to just cards. In fact, the NFC technology within contactless readers means shoppers can make use of smartphones, watches and contactless cards, letting them pay in a way that suits them.
From a Business Perspective
Better operational efficiency – With transaction lengths reduced by contactless payments, queues are less likely to build up, meaning less staff will be required behind tills, allowing them to be distributed through your business. In addition, contactless payments help to reduce the time staff need to spend counting cash or operating card machines.
Better customer experience – Businesses that offer a contactless payment option provides their customers with a quicker and smoother checkout experience, which improves customer experience and helps earn customer loyalty.
No extra cost – Providing a contactless payment option doesn’t require any additional processing fees for businesses, meaning there are no extra costs. In addition, many businesses will be able to update their card readers to contactless card readers with little to no costs with certain providers.
Fraud protection – In addition to being more secure for customers, contactless payments technology is encrypted to discourage any hacking attempts. In addition, better transaction security means that businesses can easily get their money without any difficult disputes. Most banks also protect against fraud with their contactless payments.
With so many benefits to contactless payments, it is no wonder more and more businesses are beginning to offer contactless payment as an option for their customers and B2B payments. In addition, with availability increasing every day and security concerns diminishing, there has never been a better time to try out PaidYET. No hardware, no software and no development is needed. Use with any invoicing system or none. Accept payments anywhere securely.