The popularity of contactless and online payments has surged to an all-time high. Thanks to the changing mindsets of customers. However, many people are yet to know that the purpose and origin of the payment systems differ drastically.
Things to know about contactless payments
Are contactless payments the new norm? Yes, to a great extent. The system primarily gained popularity from the time of the outbreak of the global pandemic. Research reveals that over 60% of consumers would prefer transacting through a contactless payment method given the price, product line, and location are similar. The research also states that around 50% of international consumers would agree that the touch less payment method is more useful. Here are five things to know about the functionality of touch less technology:
- In contactless payment, a customer can purchase goods through debit or credit cards comprising RFID or the Radio Frequency Identification Technology
- For stores implementing this method of payment, customers need not swipe their cards, enter the PIN, or put in a signature
- The RFID technology leverages electromagnetic fields to locate the tags associated with special objects
- When used by interrogation pulse from the nearest device with RFID technology, the tag transfers digital data while locating an inventory number.
- Usually, the size of the touch less payment is limited and the permissible amount may vary by bank and country.
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Benefits of contactless technology
There is no denying that more and more businesses are leveraging the benefits of contactless payments. Wondering why? Here is why this technology is gaining widespread momentum.
· Safe transaction
The tap-to-pay technology is far more secure and reliable than the other payment methods primarily due to the chip process that protects against scams in purchasing through encryption.
· Flexibility of payments
It’s time to do away with traditional payment systems. The NFC payment is Smartphone-enabled and it is all you need to purchase from a store.
· Ease of use
All that the retail operations look forward to are shorter queues and faster transactions. Customers and stores today need not worry about handling and managing cash at checkout. Moreover, the hassle of punching in the wrong pin has become a thing of the past.
· The efficiency of store operations
If you are a store owner trying to enforce the touch less payment method, it will require fewer workforce. Moreover, you can minimize the time spent on counting cash and using card machines.
· Enhance the customer experience
Studies reveal that businesses offering contactless payment facilities initiate a faster checkout experience.
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· Minimum cost
Wondering whether installing retail point-of-sale systems is expensive? It’s not as you need not pay an additional processing fee. Retail Control Systems provides retail point of sale systems to businesses ranging in over 11 industries. The company has the know-how to allow businesses to gain control over finances and operations.
Obtaining contactless payments
If you are a merchant planning to accept touch less payments, the first step is obtaining a POS terminal with RFID technology. Furthermore, it is necessary to open an account with the acquiring bank. You need to set up the merchant account safely.
What is online payment?
An online or electronic payment aids the acceptance of buying goods electronically. However, there needs to be an online platform like an application or a website. Naturally, customers can pay through mobile wallets, debit or credit cards, crypto currencies, and local currencies. The primary point of difference between online and touch less payment is that the former requires a physical wallet.
Understanding the functionality of online payment is necessary for storeowners keen to implement merchant services. With that said, the online payment process requires a merchant account for fund collection, a website that performs the transactions, and a payment gateway that relates to the internal banking networks.
Benefits of online payment method
The activation of an online payment system offers you the following benefits. Here is what you need to know.
· Reducing human errors
The instant verification method cuts down on the need to implement human resources and you can allocate them for other tasks.
· Logical payment method
The online payment procedure is a logical system based on instant verification. Therefore, customers do not need to send proof of payment, so business owners can steer clear of manual accounting systems.
· Increase the consumer base
As online payments expand the reach of a business, it also boosts the customer base. It allows customers to buy directly from the website or the app.
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· Quick and easy integration
Modern-day online businesses prefer quick integration and the online transaction method is easy to integrate with a few steps.
Which payment method to pick
The contactless payment systems leverage credit or debit cards and the merchants using them require retail POS systems terminals. Online payment, on the other hand, depends on payment apps or the business website. You need to analyze the business requirements and the type before implementing a payment method.