The future of contactless payments
As new technological solutions develop, consumers get access to new and innovative payment methods when they purchase products and services.
Traditional payment methods such as cash and credit cards with magnetic stripes or chips, have been the standard payment solutions for many years. But recently a new challenger has entered the market. We are of course talking about contactless payments.
First of all: What are contactless payments?
Contactless payments can be described as payment methods that does not require use of cash or swiping a credit card.
Many credit cards have traditionally been used with a chip or magnetic stripe, and the payment must be verified with a PIN code. With contactless payment you just need to wave or tap the card near the payment terminal. You don’t even need to add the code.
You can also use most modern cell phones for contactless payments, which means that you can leave your wallet at home. Examples of phone based contactless payment methods are Apple Pay, Google Pay and Vipps.
What is the technology behind contactless payments?
When a person is making a purchase with contactless payment methods, the payment terminal will connect with the user’s bank account automatically.
This is possible thanks to contactless technology like RFID (radio frequency identification) or NFC (near-field communication). Radio waves are sending the necessary information from a phone app, contactless payment card or a bank account to the payment terminal.
Alternatively, a QR (quick response code) can be used. This means that the transaction is done by scanning a QR code shown in the user’s mobile app. Both Google Pay and Apple Pay use this technology.
Are contactless payments the new payment standard?
Contactless payments are becoming more and more popular. According to experts in UK Finance, more than 70% of all cashless payments were contactless in 2020. Since then, the trend has been increasing even further.
There are many reasons for this. Contactless payments are thought to be both easier and faster than traditional payments with cards or cash.
The popularity of contactless payments increased during the pandemic
In 2020, the popularity of contactless payment methods had a steep growth due to the pandemic. The importance of hand hygiene to prevent infection with COVID-19, made people all over the world preferring contactless payments.
When paying contactless, the customer usually doesn’t need to touch the payment terminal, which makes the process more hygienic. As the pandemic is slowly going towards an end, many people have gotten used to contactless payments and will keep using it in the future.
There is a good reason to believe that contactless payments will be the new payment standard in the coming years. Not only because it’s more hygienic, but also because it’s easy and fast.
Why recommend POS systems that support contactless payments for businesses?
As a distributor of POS solutions, you should be able to give your business customers an overview of the benefits from offering contactless payment to their own customers. Here’s why you should recommend POS systems that support contactless payments:
- Fast and easy payments for customers
- Shorter queues in-store
- Safer that traditional credit card swiping
- Customers can pay with their phone and leave the wallet at home
Contactless payment methods will protect your customers against hackers and fraud. When it comes to traditional card payments, hackers can scan the cards to steal sensitive information.
NFC and other contactless payment technology use encryption when sensitive information is sent back and forth.
Tidypay makes contactless payments easy for businesses
Are you looking for a safe payment terminal that supports contactless payments, that can be recommended to your customers? Tidypay One is a smart all-in-one device that makes contactless payments easier than ever.
The POS system is reliable and user friendly, and a great choice for all merchants that wants to focus on mobile and contactless payment trends.
Do you have any questions about Tidypay? Feel free to contact us, and we will make sure you find a POS solution that will fit all your customer’s needs.