In simpler terms, a consumer can simply tap a credit/debit card, their phone (smartcard) or any other means of payment onto the payment terminal and do a quick exchange of buying and receiving without any manual payment conducting.
Many industries and businesses see this as a necessity growing forward in their market as consumers become more varied in making payments in a safe, efficient and easy manner.
Why are contactless payments becoming an essential part of every industry?
As many industries’ payments needs and wants grow, consumers are also partaking in how they can have a more simplified and safer payment journey in their day to day life. Understanding the growing needs of consumers and evolving industries has led to around 92% of the world using contactless payments.
Let’s take a further look into why contactless payments solutions are becoming the future:
- Consumer preference
Consumers are becoming more increasingly aware of how they can make payments which are faster, efficient and more secure. They are increasingly wanting to do a simple tap & go process by simply holding their contactless cards or devices over the terminal. There is no person to person contact at the point of sale and the process is simple and quick.
- Health concerns
The pandemic has accelerated everyone to become more aware of touching things or passing things which may pass germs and bacteria. Contactless payments have shown a more safer payment option especially for smaller everyday payments where there is no personal contact and rather just a tapping of the card or device.
- More efficient transactions
Contactless payments are 10 times faster than putting your pin in or dealing with cash, it is a quicker and more efficient transaction which can be conducted within a couple of seconds. This allows both retailers and consumers to save time and deal with most efficient transactions.
- Generational (Tech-savvy) change
As more payments are conducted online and there are third party payments apps like Vipps, Paypal etc as well as virtual credit and debit cards, there is a higher push towards contactless payments. The use of cash has severely declined since the tech has taken over making contactless payments a priority in the future.
How do contactless payments work?
A contactless payment requires RFID and NFC enablement on a payment device where the payment can be conducted through wireless transmission. In most cases the process will be as follows:
- A customer can use their debit/credit card or digital bank card
- The payment device provided by a PSP combined with the POS authorizes monetary exchange to be conducted
- The amount of exchange can be entered on the payment terminal
- The payment card (digital or in hand) can then be tapped into close proximity to the POS reader.
- The microchip in the consumer’s card will generate one time verification values.
- The POS reader will then read the transaction, process it and approve or decline it.
Learn more about Tidypay´s PSP services in contactless payments
Tidypay offers user-friendly and secure Payment Services combined with our partners POS systems offering the best choices for contactless payments.
TidypayGO SoftPOS is also our upcoming launch which will simplify and offer the services of contactless payment journey furthermore.