The Pros and Cons of Contactless Payment
As the world catches up to the digital age, so do our payment methods. Automated point-of-sale (POS) systems and contactless payments are gaining traction according to recent statistics. In fact, the Central Bank of Ireland states that 62.4% of payments. Here’s what to expect from this popular payment method.
As a rule of thumb, contactless payments are quick and easy. Faster processing times mean shorter queues and happier customers. There’s also no need to remember your PIN in most cases.
Contactless payments mean waving cash virtually goodbye. Having the flexibility to pay with a card or smartphone lets you decide what’s most convenient. Just make sure your smartphone is NFC-enabled.
Play It Safe
Chip technology in tap-to-pay options is safer than other payment methods. Contactless payments feature data encryption for more secure transactions and deterred hacking.
In light of COVID-19, limiting contact between customers and employees means more hygienic transactions. There’s no guarantee of perfect conditions, of course, though the elimination of cash handling and hand-to-hand contact certainly helps.
No Added Cost
From a business perspective, contactless payment methods pose no added fees. Offering additional payment options for an improved customer experience is relatively painless.
For all their convenience, the spending cap on contactless payments comes as a bit of a downer. Perhaps these limits will change as the transaction method expands, but for now, contactless is best suited to small purchases.
This form of payment may be part of our financial landscape, though in some respects, it’s still a thing of the future. Not all retailers have embraced contactless payments, particularly among smaller outlets. Keep your eyes peeled for gradual expansion.
Much to the chagrin of vacationers everywhere, contactless payments are a no-go internationally. Check with your individual provider for more details, though generally speaking, contactless payments are a sticky wicket abroad.
Data encryption renders this form of payment safe overall. That being said, a stolen card or device could very well be problematic. Keep your payment information available to notify your bank or service provider of a missing card or device ASAP.
Wave vs. Wallet
Now that we’ve established the pros and cons, let’s break down the payments a bit further. Here are the two modes of contactless payment.
The wave refers to a symbol on your credit card, debit card or other contactless payment device. Formed as four curved lines in a row, its shape resembles a megaphone for easy identification.
Unlike the direct use of credit or debit cards, mobile wallets account for online contactless payments. Add your card details to your mobile wallet for simpler transactions going forward. Then it’s just a matter of making transactions from your preferred device using apps like Apple Pay, Google Pay or PayPal.
Contactless payments pave the way for safer transactions moving forward. Knowing what you’re in for helps smooth the transition. What are your thoughts on this new form of payment? Are you looking to implement this in your company? Grenke is a leasing company that gives businesses like yours a leg up in digital transformation through financing solutions and affordable equipment leases.
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