Contactless payments represent the next generation in efficient, secure transactions. With the merest tap or wave of a customer’s phone or smart card near a seller’s contactless card reader, a purchase can be made. Just what is causing this new method of buying to catch on like wildfire with merchants and customers alike? Let’s take a look.
How contactless payments work.
The magic of contactless or touchless transactions lies in the seamless interaction between a customer’s smart credit card (or their phone’s digital wallet) and a merchant’s credit card reader. In the former case, the card is embedded with the consumer’s sensitive payment details. In the latter, the customer pre-loads the wallet app that is built into their smartphone with their credit card information. Both the buyer’s device and the merchant’s reader or POS system are equipped with near-field communication (NFC) technology that enables data to be quickly yet securely passed from one to the other.
At the point of purchase, the customer opens their digital wallet and places their phone or wearable a few inches from your merchant’s contactless reader. For a smart credit card, accessing a digital wallet is unnecessary. Details are conveyed to your payment processor and on to the other players in the process. Within seconds, the transaction is either accepted or declined and the information is sent back to your POS system.
Although the entire touchless payments process occurs in little more than the blink of an eye, security should not be compromised in the least. Partner with a PCI-compliant payments technology company that offers certified, point-to-point encryption and tokenization. That way, you can rest assured that data will be converted into a single-use, random series of digits that, even if stolen by a hacker, is of no use to cybercriminals. Because the payment takes place via your POS system, a digital record will be safely kept for future reference, with a receipt available either on paper or via email.
The advantages of contactless payments.
The coronavirus pandemic turned virtually every aspect of buying and selling upside-down. Due to concerns about hygiene and safety, it became more important than ever to limit or eliminate any physical touching between customers (and their credit cards, smartphones, or wearables), and merchants (and their various payment devices). Contactless payments, already on the scene and slowly gaining in popularity prior to the pandemic, have since quickly increased in popularity among both buyers and sellers.
They have also become integrated with the mobile payments culture that has also been coming to the fore. Using a mobile POS (mPOS) system with contactless capabilities, customers are now able to make purchases conveniently and safely from anywhere: In-store, curbside, or on their own doorstep! Even so, they can continue to count on the same high level of security that they receive at a physical store’s POS system.
Customers are not the only ones who were pleased with the safety and efficiency of touchless payments. Entrepreneurs like yourself have realized that tap-and-go transactions take place much faster than purchases made with cash, checks, or even traditional plastic. The result is shorter and more rapidly moving lines at the checkout counter, less harried cashiers, and happier customers.
If you’re considering taking your retail business to the next level, incorporating contactless payments into your business is one of the smartest and most affordable steps you can take. Doing so will demonstrate your commitment to your customers’ and employees’ safety, without compromising security. Buyers will love the fact that you are offering touchless payments as a choice, which might just nude you a step ahead of competitors who have not enhanced their operations in this way. These days, any solution that can provide your customers with peace of mind (and your business with better efficiency), is definitely worth exploring.
Contactless payments represent the next generation in efficient, secure transactions. With the merest tap or wave of a customer’s phone or smart card near a seller’s contactless card reader, a purchase can be made. Just what is causing this new method of buying to catch on like wildfire with merchants and customers alike? Let’s take a look.
How contactless payments work.
The magic of contactless or touchless transactions lies in the seamless interaction between a customer’s smart credit card (or their phone’s digital wallet) and a merchant’s credit card reader. In the former case, the card is embedded with the consumer’s sensitive payment details. In the latter, the customer pre-loads the wallet app that is built into their smartphone with their credit card information. Both the buyer’s device and the merchant’s reader or POS system are equipped with near-field communication (NFC) technology that enables data to be quickly yet securely passed from one to the other.
At the point of purchase, the customer opens their digital wallet and places their phone or wearable a few inches from your merchant’s contactless reader. For a smart credit card, accessing a digital wallet is unnecessary. Details are conveyed to your payment processor and on to the other players in the process. Within seconds, the transaction is either accepted or declined and the information is sent back to your POS system.
Although the entire touchless payments process occurs in little more than the blink of an eye, security should not be compromised in the least. Partner with a PCI-compliant payments technology company that offers certified, point-to-point encryption and tokenization. That way, you can rest assured that data will be converted into a single-use, random series of digits that, even if stolen by a hacker, is of no use to cybercriminals. Because the payment takes place via your POS system, a digital record will be safely kept for future reference, with a receipt available either on paper or via email.
The advantages of contactless payments.
The coronavirus pandemic turned virtually every aspect of buying and selling upside-down. Due to concerns about hygiene and safety, it became more important than ever to limit or eliminate any physical touching between customers (and their credit cards, smartphones, or wearables), and merchants (and their various payment devices). Contactless payments, already on the scene and slowly gaining in popularity prior to the pandemic, have since quickly increased in popularity among both buyers and sellers.
They have also become integrated with the mobile payments culture that has also been coming to the fore. Using a mobile POS (mPOS) system with contactless capabilities, customers are now able to make purchases conveniently and safely from anywhere: In-store, curbside, or on their own doorstep! Even so, they can continue to count on the same high level of security that they receive at a physical store’s POS system.
Customers are not the only ones who were pleased with the safety and efficiency of touchless payments. Entrepreneurs like yourself have realized that tap-and-go transactions take place much faster than purchases made with cash, checks, or even traditional plastic. The result is shorter and more rapidly moving lines at the checkout counter, less harried cashiers, and happier customers.
If you’re considering taking your retail business to the next level, incorporating contactless payments into your business is one of the smartest and most affordable steps you can take. Doing so will demonstrate your commitment to your customers’ and employees’ safety, without compromising security. Buyers will love the fact that you are offering touchless payments as a choice, which might just nude you a step ahead of competitors who have not enhanced their operations in this way. These days, any solution that can provide your customers with peace of mind (and your business with better efficiency), is definitely worth exploring.
