Contactless payments are designed for small purchases, like a coffee, groceries, or a quick trip to the drugstore and speed up transactions in fast-paced environments where customers are more likely to be in a hurry.
FREMONT, CA: A contactless payment does not need any physical contact between a buyer’s smartphone or credit card and the point of sale (POS). Near field communication (NFC) powers contactless payments through a type of radio frequency identification that enables the card or smartphone to communicate with the payment reader and the POS wirelessly without the need to swipe their card or enter a PIN.
This technology is not only limited to cards and smartphones but also mobile wallets, stickers, key fobs, and fitness trackers.
Here are four benefits of contactless payments:
Secure Transactions
The chip technology in contactless payments is safer than other forms of payments, and fraud losses on these cards remain relatively low. They are also PCI compliant, so businesses can prevent possible chargebacks and continue to enjoy a positive reputation with the customers.
No Additional Fees
Businesses pay the same fees required to pay for a regular credit card transaction and do not charge any additional fees when accepting contactless payments.
Contactless Payments Remove Friction
Contactless payments remove friction and offer customers a better buying experience, unlike EMV chip technology, which takes time during transactions. The payment is faster than cash or card transactions and helps stores needing fewer employees during peak business hours.
Increased Customer Satisfaction
Customer experience is a top priority for a successful business, and contactless payments help streamline that. This makes it perfect for restaurants and bricks and mortar stores, which usually have long customer wait times as it decreases the waiting time and increases customer satisfaction.
Customers show higher loyalty to businesses that accept contactless payments as it indicates that these stores value staying current with the payment technology.
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