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Traditional POS systems have long dominated the payment landscape. But their reign is ending as more customers demand the convenience of contactless payments. This guide highlights the benefits of cashless systems and how they can streamline operations while enhancing customer satisfaction.
Key takeaways
- Contactless payment is a cash-free, tap-and-go payment method.
- To use the system, a customer taps their card or device near a POS system that supports the technology.
- Contactless payments can benefit your business in various ways, including increased customer satisfaction, efficiency, and enhanced shopping experiences.
- The future of contactless payments is reshaping consumer habits with increased mobile payments and growing interest in digital currencies.
Customer service is a vital pillar of any successful business. But to do it well, you must figure out how to keep customers happy and engaged. One sure way to do that is by providing a seamless customer experience that prioritizes their needs, simplifies interactions, and consistently delivers high-quality support at every touchpoint
That’s where contactless payment comes into play. According to the Pew Research Center, cash payments are declining, with 42% of Americans saying none of their purchases in a typical week are paid for using cash. Additionally, most customers don’t want to waste time entering passwords or swiping their cards.
This means traditional point of sale (POS) systems are becoming obsolete; businesses need to adopt more advanced systems with contactless payment capabilities to keep up with customer demands. Dive in to learn how upgrading to modern POS solutions increases customer satisfaction, boosts efficiency, and enhances the shopping experience.
What is contactless payment?
Contactless payment is a cash-free, tap-and-go method where customers simply tap their card or mobile device at checkout to complete transactions. The transaction is completed based on their proximity to the point-of-sale terminal, eliminating the need for swipes, card insertions, and pesky pins and passwords.
How does it work?
Contactless payment relies on two technologies: radio frequency identification (RFID) and near-field communication (NFC). RFID technology enables fast and secure transactions by passively identifying objects like credit cards using radio waves. Likewise, NFC is a short-range wireless technology that connects smartphones, tablets, wearables, and payment cards.
When customers want to complete a transaction, the payment system prompts them to bring their card or device close to the contactless payment symbol on the terminal. The bank then receives their payment information electronically.
What are the benefits of contactless payment?
When customers don’t have to swipe their cards or enter security details when making a purchase, they enjoy increased convenience when shopping. That’s not all; there are more benefits to using contactless payment for businesses and customers.
1. Speed
The average contactless payment takes less time than traditional POS systems, which rely on card transactions. Some estimates put this under 15 seconds, which is remarkably fast.
Essentially, with less cash handling and processing, transactions are completed faster. This also translates to faster turnover, significantly reducing the possibility of queues building up.
That allows businesses to reduce their customer service staff, significantly reducing overhead costs.
2. Security
According to recent findings by security.org, nearly 60% of U.S. cardholders have fallen victim to fraud. This is where contactless payments step in, offering enhanced security through built-in safeguards that significantly reduce fraud risks.
For example, card details and numbers remain encrypted, as every transaction generates a unique identifier separate from the card number. Additionally, many contactless payment providers set a spending limit on transactions, further minimizing the chance of significant financial losses in the event of fraud.
3. Mobile wallets are becoming increasingly popular
A huge chunk of the population is slowly moving from traditional cash payments to mobile, cashless payments. Some major tech companies like Apple and Samsung have already started installing mobile wallets as a standard feature in their smartphones and wearable devices.
If you cannot meet customer demands, particularly regarding how they choose to pay for goods and services, you could miss out on sales.
4. Increased customer satisfaction
Every business owner knows the value of providing good customer service. Contactless payment can help by reducing wait times and making the process more seamless and pleasant.
Businesses leveraging contactless payment solutions also reduce some paperwork associated with reporting sales. These modern systems can automatically record and file sales data. Others can also generate reports, freeing up employees’ time to focus on more crucial business activities.
The future of contactless payments
The shift toward contactless payments has completely altered consumer habits. Now, more consumers opt for quick and secure payment methods over traditional cash and card transactions.
Even more impressive is the rate at which the technology is advancing. From mobile wallets and biometric identification to quick response (QR) payments, an entire suite of contactless payment technologies makes transactions faster and more convenient.
Here are a few trends to look forward to.
-A surge in mobile payments
Mobile payments are reshaping the payment landscape, with smartphone-based transactions accounting for more than 50% of global contactless payment revenue. In 2022 alone, Apple reported enrolling 45.4 million users in its mobile wallet, Apple Pay.
Similarly, North America has emerged as a leading market for QR transactions, with recent estimates indicating that up to 7 in 10 merchants use QR codes to process payments.
Governments worldwide also encourage their citizens to use digital wallets instead of cash.
-Development of purely digital payment solutions
Contactless payment isn't just limited to traditional fiat currencies. Many consumers have expressed growing interest in privately issued digital assets like cryptocurrency and non-fungible tokens (NFTs).
Many businesses leverage this opportunity by working with payment processors accepting digital assets, further broadening their customer base. This trend will continue as more consumers seek more privatized and secure payment solutions.
Ready to get started on contactless payments? Unisol International can help.
Contactless payments can transform business operations, especially in streamlining payment processing and enhancing customer engagement. By adopting contactless payment solutions, businesses can boost customer satisfaction, speed up transactions, and reduce staff workload while offering a safe, secure, and convenient payment option for goods and services.
However, selecting the right system can be complex. With so many options available, choosing a solution that aligns with your business' unique needs and growth plans is essential. The right system will help minimize downtime and offer scalability as your business evolves. This is where expert guidance becomes crucial — ensuring your chosen system seamlessly aligns with your needs.
At Unisol International, we offer various modern POS systems with contactless payment capabilities. Our team of experts can help you choose the right model for your business and even set it up for you.
Contact us today to speak to an expert.
