Digital wallets partner up with merchants to offer exclusive discounts to users, increasing the wallet usage and shopping at the merchant. This data from past purchases can be used to display targeted discounts on digital wallets
FREMONT, CA: Contactless payment is a method of payment that uses a debit, credit, or smart card with the help of RFID or NFC. Therefore, they do not require a signature or a PIN, making it faster than the traditional form of swipe payment.
The contactless payment symbol looks similar to the WiFi logo but turned on the side, which can be seen on merchants that support it or a POS terminal. Bringing the card close to an inch or two from the symbol makes an instant beep, a green light, or a checkmark to show that the payment has been successful.
Customers with digital wallets can tap or scan through the app from their smartphone on the POS terminal with an NFC/QR and make payments quickly and instantly.
Here are five benefits of contactless payments:
Faster than Regular Card Payments
Retailers have seen a rise in the average transaction value because of the speed, convenience, and security of contactless transactions. Customers are not restricted by the amount of cash carried or annoyed by the inefficient checkout process, leading to a decrease in abandoned sales.
Promote Increased Card Usage
Contactless payments are more convenient than traditional methods, and consumers find it a more reliable way to do transactions. This results in the gradual transaction from increased usage.
Enhances Security and Reduces the Risk of Fraud
Contactless payments have the same protection as EMV chips, making it safe compared to cash transactions. The in-built protection does not allow the same transaction to happen twice, and if prevented, the details and numbers cannot be decrypted as unique numbers are used for the transaction that does not correspond to the actual card numbers.
Contactless Payments Boost App Adoption
For retailers that provide their digital payment systems, contactless payment can drive up app adoption rates. Cashless transactions act as a motivation for shoppers to download the app along with the added benefits of exclusive discounts, coupons, and more.
More Convenient for Consumers
Swipe and pay cards need signatures or a PIN, unlike mobile contactless payments, that can allow users to make payments if they forget their cards or wallets.
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