Published: 26/ 09/ 2019
Contactless payments are well and truly on the up, and it’s no surprise, they’re literally a one-tap wonder. They actually first came onto the scene back in 2007 but it was 2014 they started to really build momentum, racking up £2.32 billion in spending.
Fast forward a few years and in 2018 contactless accounted for more than half (53%) of all in-store payments overtaking chip and PIN for the first time.
Did you know? Visa and Mastercard will require all card machines to accept contactless payments by 2020.
The good news is, here at takepayments, we’re one step ahead of the game and all our card machines come with contactless set-up, so you’re ready to start benefitting from chip and PIN and contactless payments right away.
Accepting contactless payments benefits both you and your customers, and let’s be honest, what’s good for your customers is good for you, so it’s a win-win-win.
Gone are the days customers have to enter their four-digit PIN, all they have to do is wave their card within the proximity of your machine and they’re done.
We know chip and PIN was incredibly easy anyway, but contactless payments make transactions that bit more convenient - which is probably why 85% of contactless users said they’d recommend it to their friends and family.
Contactless transactions are processed using the same technology as chip and PIN. All sensitive data’s encrypted to stop hackers from getting their hands on it and any single payment is limited to £30 - so if someone’s card was stolen, there’s only so much damage that can be done.
Every second helps, right? Contactless payments are said to take around 12.5 seconds, compared to 26.7 seconds for standard card payments and 33.7 seconds for cash. So, if you’ve got a long queue growing it could help your lines go down quicker.
Thinking big, the benefits of this one could actually be huge. For starters, your customers will be happy because they’ll spend less time waiting around. As well as that, you might be able to get away with fewer employees on the tills at once, cutting overheads and increasing profits.
Contactless payments aren’t just limited to credit or debit cards, they can be used in other forms - like mini-cards, key fobs, stickers, mobile wallets, wristbands and watches. Although they might not all be that common today, who knows how popular they’ll be in a year or two and it’s better to be ahead than behind.
Keeping up with modern advancements is part and parcel of running a business and staying competitive, and contactless payments are the direction it’s going. So, by sticking with the times you’ll be giving your customers what they want in more ways than one, which will only add to their satisfaction and loyalty.
Did you know? One in three card payments is contactless.
Let’s say someone’s come into your shop only to realise they’ve left their card and cash at home...but they do have their mobile phone. If their device facilitates mobile contactless and you’ve got a compatible machine, they could go ahead and still buy something anyway.
If contactless isn’t something you’ve caught onto though, they’d have to walk away empty-handed.
Contactless credit or debit cards come with a chip built-in and that chips emits radio waves to connect to a contactless reader - the proper lingo for this is radio frequency identification (RFID) technology.
To pay, all customers have to do is hold their card close enough to your terminal for the signal to be picked up, communicated and processed into a payment.
Mobile phones and other electronic devices work a bit different by using what’s called near-field communication (NFC), which is based on the same sort of technology.