With technology constantly changing and transforming into more advanced forms of itself, it is crucial that companies stay on top of this high-demand industry in order to keep up with the competition. One of the most significant ways technology has changed the way we go about our day is via payment methods— specifically contactless payment. Matter of fact, in 2021 alone, contactless payments made up approx. 90% of credit and debit payments in the United Kingdom.
Here at Payeex, our payment processing company wants to provide you with all the information you could possibly need about contactless payment methods, so you can determine whether or not this change is worth it for your business (spoiler alert: it likely is).
When it comes to the advantages of contactless payment, they seem almost limitless. After all, there’s a good reason as to why it’s one of the most commonly used payment methods today. Some of these amazing features include but are not limited to:
- Faster Payments: The quicker your transactions, the more customers you are able to help and the better your customer service is. This advantage is a win-win for both parties!
- Increased Convenience: The more convenient a business is overall, the more people are likely to come back and rely on you for your service.
- No Additional Fees: Whereas other types of payments require processing fees, contactless payments require zero additional costs.
- Hygienic/COVID-Safe: When someone inserts their card via chip or swipe, they also touch the terminal and expose themselves to all the germs from the people who used it before them. Contactless payment avoids all of these germs, offering people a method that requires no hand-to-terminal contact.
- Quicker Lines: This adds onto the previous point in regards to faster payments, but lines at your store can deter a lot of people from paying for their items. When you take advantage of contactless payments, your line will move much faster, making it worth it for any potential customers.
- Improved Mobile Reliability: Let’s say a customer forgets their wallet in their car and they get to the front of the line. When you have to explain to them that they can’t buy their items without their wallet/cash, it comes as an inconvenience to you, to them, and to everyone else in the store. You remove this inconvenience when you give people the option to use their phone because of your contactless payment methods.
Just like everything, contactless payment methods come with a few drawbacks. While they don’t outweigh the abundance of advantages, it’s important to be aware of them regardless. They include:
- Security Concerns: Since contactless payments don’t require any additional security (a PIN/signature authorization), stolen cards/phones have the risk of being used to make transactions that are fraudulent.
- It Has Its Limits: Due to the security threat of contactless payment methods, there is a limit on how much you can spend when it comes to this type of transaction. In general, the current limit for contactless payments is $100 maximum. If your total is any higher, this method will not work and you will need to insert/swipe your card.
- It’s Not Your Cup of Tea: Although many businesses believe that this change is integral to their business and its mission, we understand that it is not for everyone. If you own a business that is directly advertised as “old school” or “vintage”, or your target audience happens to be people from older generations, contactless payments might actually come as a disadvantage.
Let Our Company Help
Here at Payeex, we understand that your payment methods should match your business perfectly. Whether you desire contactless payment for your company or not, our team is here to help so we can amplify your everyday transactions so your customers come running back every time. To learn more about how we can accelerate your business with our payment processing solutions, be sure to call us at (905) 947-9818 today!