Adapting to an ever-changing business environment is imperative for companies to survive and prosper. One example comes with payment technology; as it continues to improve, the spending behaviour of your target audience will also shift. You must recognise this behaviour and take the necessary measures.
If your business provides payment terminals for customer use, then contactless payments are the latest necessity in a long line of advancing technology. They allow customers to quickly pay for goods by simply placing their card over the machine, cutting down queue times significantly.
How Contactless Payments Work
Contactless cards are built to contain a chip that emits radio waves. When placed within close proximity to a specially-designed payment reader, an antenna built into the plastic will communicate information via low-frequency waves. The signal will include your card details and will process the requested payment instantly.
Because of security concerns, contactless payments cannot exceed £30 per transaction and customers must have enough money in their bank account to cover the purchase cost. However, there are no daily limit on making payments this way.
Advantages of Contactless Payments
Here are some of the advantages for offering contactless payments:
Fast and Convenient – The transaction process can take less than 10 seconds with a contactless card. Chip and pin transactions can take up to 30 seconds, and some consumers may even forget their PIN which causes further delays.
Shorter Queues – Quicker transactions means fewer and shorter queues, ensuring your customers have a more pleasurable shopping experience. Ultimately, the company will generate more income per hour.
Safer Transactions – Despite the initial concerns regarding fraud, thieves cannot use the card to access personal data. Some banks will periodically request you to enter your PIN also, whilst reporting any lost or stolen card will ensure no illicit transactions can be made.
Phone Payments – You can also use an NFC-enabled mobile phone for contactless payment, providing even more chances for consumers to pay on-the-go. Almost a third of consumers are now taking advantage of their phone’s payment capabilities, and continued growth is predicted over the next few years.
According to the UK Card Association, £3.9 billion was spent throughout April 2017 alone using a contactless credit or debit card – an increase of 147.6% on the same month the previous year. This should alert all physical business owners that consumers are adapting to the new technology, and so should you.
A string of reputable suppliers that provide contactless terminals can be found online, with some offering flexible payment plans that will suit different types of companies. Also consider purchasing virtual terminals if you wish to accept smartphone payments.
To show that you offer this technology, advertise the contactless symbol at the checkout counter and even on the front of your premises. This will provide a competitive advantage over rival companies that still may only offer chip & PIN. Ensure that your staff understand how the technology works, who can then advise consumers who are unsure of the contactless process.
Ensure you stay up to date on the latest business technology trends so your small business doesn’t miss out!
For any more advice on how contactless payments can be used to enhance your company, or any other aspect of business accounting, please feel free to get in touch with us today.