Contactless Payment – the new social payment phenomena

As social distancing is the new wave, A global study suggests that “79% of respondents are now tapping into contactless payments”. This is an initiative that respondents feel is a secure method. It is a way to maintain cleanliness and safety.

As contactless payments have already existed, their usage is only growing now. Why? Let’s understand a few points on why and how contactless payment is the new wave:

What is Contactless Payment?

While tap and pay has been an old phenomenon, it is usually regarded as credit and debit cards. However, with the spurt in technology, pay-and-tap or contactless payment isn’t limited to these traditional cards. The contactless mode of payment transmits radio frequencies and can be thus easily embedded with wearable devices or phones. Contactless payment uses EMV (electromagnetic or magnetic chips) where customers simply wave or tap their contactless device over a POS device to make a payment.

This happens when near-field communications (NFC) technology, or radio frequency allows the card to make a wireless connection with the card. In contactless payments, consumers are not required to swipe their card or enter their PIN.

Why Contactless payment is the new wave?

Smart consumers are indeed comfortable today with digital transformations. As Mastercard Acceptance Solutions said in the announcement, “Social distancing does not just concern people’s interactions with each other; it includes contact with publicly shared devices like point-of-sale terminals and checkout counters. Contactless offers consumers a safer, cleaner way to pay, speed at checkout, and more control over physical proximity at this critical time.”

Thus, contactless payment is an effective system of payment. As the demand for contactless payments has been growing tremendously, one of the main reasons includes the efficiency of simply tapping the card. The convenient and speedy transaction makes it even more viable.

Another reason why contactless payment is the new wave is because of its security aspect. While it is easy to hack and retrieve information from a credit card, the encryption technology makes it extremely difficult for hackers to develop a counter card to hack into. Above all, with the one-time number dedicated to each contactless transaction, one can track each transaction meticulously.

Contactless payments remove friction and instead offer a better buying experience. As business owners are all about providing a great customer experience, contactless payment just makes it the best. They are suitable for all kinds of retail, hotels, brick-and-mortar stores.

Another important advantage of contactless payment is the regular transaction charges. As business owners, one need not worry about any additional charges. You can offer contactless payment with the same transactional charges as that of credit cards. Also, contactless payments are PCI compliant. Businesses are free of any chargeback and thus can maintain a positive reputation with their customers.

As contactless payments can be integrated into mobile handsets, smartphones, and wearable devices, it is convenient and appropriate to use. In the past, we have witnessed only the U.S. as a predominant country using contactless payments. However, recent reports depict that Poland and the United Kingdom are increasingly using contactless payment for flexibility and easy usability.

As the new wave of contactless payment seems to be rising, even countries like Australia are paving its wave for the new system of payment. In 2016, Australia witnessed a 26% of growth in 2016 making 325 million contactless payments in 2017.

Thus, contactless payments seem to be the new wave of purchase. Businesses growing with their number of transactions should definitely start preparing to adopt the latest payment technology. As companies are moving to adopt modern Fintech implementation in the future, investing in contactless payment systems can mean investing in a smart business future.

If you’re looking to partner and experience ultimate digital transformations with experts, BNT shares appropriate expertise and knowledge. For more queries email at: support@bnt-support.com