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Key Advantages and Disadvantages of Contactless Payment
Tap-to-pay technology is more secure and reliable than other forms of payment. The chip technology shields customers against any fraudulent purchases through encryption and dynamic data technologies.
By
Apac CIOOutlook | Monday, September 28, 2020
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Tap-to-pay technology is more secure and reliable than other forms of payment. The chip technology shields customers against any fraudulent purchases through encryption and dynamic data technologies.
Fremont, CA: After the advent of contactless cards, people have almost stopped carrying cash. These cards make it easy for consumers and businesses to do transactions faster and without much hassle.
Let us look at the advantages and disadvantages of contactless payments:
Advantages
Ease to Use
Nobody likes to stand in a long payment line. Shorter queues and quicker transactions at the checkout are the most sought-after advantages of contactless payment. Handling cash is no longer a concern at the checkout.
Safer Transactions
Tap-to-pay technology is more secure and reliable than other forms of payment. The chip technology shields customers against any fraudulent purchases through encryption and dynamic data technologies.
Studies have revealed that businesses offering contactless payment facilities can provide a quicker and smoother checkout experience to the customers. By providing such seamless customer service, stores can also be able to win customer loyalty and build a strong relationship with them.
No Additional Cost
Providing a contactless payment facility does not require any additional processing fee. Businesses can pay the same fee applies for a transaction with a regular credit card.
Disadvantages
Not Enough Acceptance
Even though retailers are gradually facilitating contactless payments, the consumers continue to be dissatisfied with the spotty coverage, particularly among the independent retailers.
Security Concerns
Since the transaction with a contactless card does not require any PIN authorization, there is a risk of fraudulent purchases if the card gets stolen. In such a case, the card owner should inform the issuing bank about it. Most banks give a 100 percent fraud guarantee, relieving customers of any extra responsibility, given the customer were careful with its use.
See also: Top Payment and Card Solution Companies
