Contactless Payments: More Customers Ditching Cash, Here’s How Businesses and Merchants Can Set Up Contactless Payments
Contactless payments are the new norm. The reasons leading to the transition from cash to paying contactless revolve around the security and convenience that cashless payments offer. It’s fast and hassle-free, which means no more of those dreadful wait times in long queues. With contactless payment, managing money becomes easier and you do not have to worry about losing cash or leaving your wallet or bank cards at home.
The customer response to contactless payment shows how well it has worked with people and why it’s quickly becoming their default payment method. A Capgemini report revealed that digital payments grew by 53% in 2020. The report also highlighted how customers were trying out new forms of paying contactless — 41% used contactless cards, 35% paid through a card added to their digital wallet, and 27% of customers used QR codes for making payments.
A rapid transition to contactless payment
Contactless payments are on the rise, and they have been more so since the onset of the COVID-19 pandemic. Per the same Capgemini report, 64% of respondents said that they opted for contactless cards right through the pandemic, while 41% of consumers opted for them for the first time.
The efficiency, reliability, and convenience of contactless payment through cards, digital wallets, and QR codes make it hard for customers to make a reverse transition, especially during the pandemic, when most governments still recommend people to follow COVID-19 protocols.
People are quickly adapting to paying contactless through cards, even in the U.S., where it wasn’t an ongoing trend before the pandemic, with only 3% of cards being contactless, against 64% in the U.K. and around 96% in South Korea. A couple of years later, the transition was astounding. According to the Mastercard Contactless Consumer Polling, over 50% of Americans have used some form of contactless payment — from mobile wallets to tap-to-go credit cards. And even though these numbers include other payment options than just contactless cards, more people are adapting to these digital and contactless payment modes, leaving little room for businesses to exercise flexibility and resort to older payment means.
How businesses can set up contactless payment
With rising customer awareness and a dire need to switch to contactless cards, businesses can opt for services that help them set up a seamless contactless card payment experience.
While digital wallets are comparatively easier to set up, contactless cards might require third-party assistance from payment companies. But it’s a must to choose a contactless payment service provider with significant industry experience and a history of delivering payment systems that facilitate easier transactions and provide merchants and business owners with a more transparent user experience.
PaymentClub, for example, offers an easy-to-understand flat rate and exchange rate that’s linked directly to the customer’s Visa or Mastercard. There’s no other associated fee. This industry-leading contactless payment service also offers best-in-class payment devices and flexible payment plans based on your business to ensure you get the best out of your digital payment setup experience, while your customers appreciate you for your transparency and ease of payment.