Contactless payments are a fast, convenient way to transfer money from your client’s account when they purchase goods or services. This can include the use of debit and credit cards, smart cards, key fobs, and more. They allow secure payments using near field communication (NFC) or radio-frequency identification (RFID). Including their high levels of convenience and security, there are several benefits to using contactless payments in your business.
Another benefit of using contactless payment software is that it allows information to be transmitted without actually coming into contact with the terminal. This makes the speed of transactions faster than those done with point-of-sales software. This is backed up by data concerning average transaction speeds. Cash transactions take the longest, with an average of 34 seconds per transaction. Magnetic card strip transactions take 25 seconds, and contactless payments take an average of 15 seconds, making contactless payments.
While it may seem as if contactless payments are less secure than those that require your card to physically come into contact with the payment terminal, this is not the case. The way these payments work is by requiring you to be within a certain distance from the terminal. Once you are, a unique code is generated for the transaction. There are several layers of encryption and security that are used to ensure the security of these transactions. Additionally, contactless payments do not require that the card number be transmitted at any time during the transaction. Even if a thief were to attempt to steal information and successfully decrypted it, it would be useless.
Another advantage of contactless payments is that it actually produces more sales for retailers. A study was done in 2004 that compared the number of transactions and total amount spent during transactions when retailers offered contactless payments. It was shown that there was an increase of 1% in the number of transactions and an increase by 15% for the average amount spent. This is definitely an advantage for retailers.
Improved Customer Service
Customers appreciate quick transaction times and high levels of security. Contactless payments deliver both of these. When you spend less time on transactions, you can service customers better. Additionally, contactless payments are more secure than point-of-sales transactions. This benefits your business because customers have a higher level of trust in your business, knowing that you are doing everything you can to protect their sensitive data- such as their card number and information.
Better Management of Peak Sales Times
In some areas of business, especially restaurants, cafes, and some retailers, there are peak sales times when your business may become extremely busy. It can be very difficult to manage these sales times, especially if you do not have enough staff or enough payment terminals on hand. This problem only increases as your business becomes more popular. Contactless payments, a service Fattmerchant offers, significantly reduce transaction time. This allows you a better chance of managing these rush periods without sacrificing customer service.
Another great thing about contactless payments is that if you already have a point-of-sales terminal, then it will be relatively easy to train employees on the new hardware. There are many similarities between contactless and point-of-sales payments, meaning that most of your employees already have the skills necessary for using contactless hardware and software. This means easy implementation and less down time when you switch systems.
There are many benefits of choosing contactless payments over more traditional methods. It is faster, allows for better customer service, is easy to implement, and more. It is something that you should really consider if you want what is best for your business.
About the author: Lautaro Martinez is a small business owner who benefits from contactless payments. He shares in his articles his personal tips and insights into running a business smoothly and effectively. If you would like to learn more about Lautaro, check out his Google+ profile.