Contactless payment options attract customers because of their efficiency and convenience, saving you time and helping drive up productivity. Each contactless transaction makes it easier for business owners to get paid faster and keep track of their business.
Contactless payment technology utilizes the same Near Field Communication (NFC) technology as mobile wallets like Apple Pay and Google Pay.
Save Time, Grow Sales, Find Insights
The number of contactless transactions increases each year as more consumers welcome the convenience of contactless payments.
Accepting digital or contactless payments can help you:
- Better understand your business and allow you to spot customer trends. For example, you can get a record of all the contactless payments made into your bank account, how much they were for and what time and date they were made.
- Downloading a spreadsheet of your payments at the end of each month can help you spot patterns in your business. For example, are your customers making smaller, more frequent purchases at the weekend and larger, less frequent ones during the week? This kind of insight can help you make informed decisions about running your business and promoting your services.
Contactless Productivity Gains
As you can imagine, the time waiting for a customer to be invoiced, pay in either cash or remember their PIN, with the ‘do you want a receipt’ query, soon adds up. Going contactless has several benefits, such as:
- Contactless payments significantly reduce transaction times, allowing customers to pay by simply tapping their card or mobile device on a terminal. This speeds up the checkout process and reduces wait times.
- Faster transactions mean shorter lines and quicker service, enhancing customer satisfaction and increasing the number of transactions that can be processed in each time frame.
- Contactless payments use encryption and tokenization technologies, which provide an additional layer of security compared to traditional magnetic stripe transactions.
- The security features in contactless payments reduce the risk of card skimming and fraud, as card information is not exposed during the transaction.
- Higher customer satisfaction and repeat business.
- Lowers the risk of errors associated with cash transactions, faster bank reconciliations, and less temptation for theft and cash-related security concerns.
- Demonstrate adaptability to changing consumer preferences and contribute to the overall image of the business as customer-centric.
- Integrate with loyalty programs and digital wallets to offer personalized promotions, discounts, or loyalty points seamlessly, fostering customer engagement and repeat business.
- The transaction data helps gain insights into customer behavior, preferences, and buying patterns.
- The ease of contactless payments can encourage impulse purchases, as customers can make quick and spontaneous buying decisions without the hassle of traditional payment methods.
While there may be initial costs associated with adopting contactless payment technology, businesses can save money over time by reducing the need for physical infrastructure related to cash handling, manual payment processing and improved operational productivity efficiency with labor savings.
Get Paid Immediately
If you are a ‘mobile’ business or serve customers in their homes, accepting digital payments means that you can take payment on the spot. This way to pay is significant because:
- Most customers do not have a large amount of cash on them or have the correct change. Digital payment options make things easier.
- If you find you’re spending time chasing invoices, offering a mobile option can remove the need to invoice. In addition, with contactless card payment options, you can avoid bad debts and payment delays.
- Instant payment simplifies cash management, decreases the need for frequent bank visits, and minimizes the risk of cash theft or loss.
- Automating payments through contactless technology reduces the risk of human error during the transaction process.
Merchants don’t necessarily need a mobile payment terminal to benefit. Cloud-based accounting software lets you easily send contactless invoices once the job is done, and customers can pay for their purchase straight away. If they forget, reminders are sent automatically.
Be Careful With Credit Card Transactions
Receiving credit card transactions increases the potential risk of fraudulent transactions, which you may be liable for. Therefore, before you accept online or contactless payments, ensure you have robust processes and practices in place.
To reduce the chance this happens to your business, you should start to think about:
- Educating staff about common payment scams to avoid being a victim in the first place.
- Implement a risk review process for orders before shipping them out. If an order is deemed risky or out of the norm, you should look to complete due diligence on the cardholder or refund the transaction and contact the cardholder for an alternative payment method.
- Always refund a transaction to the original card and never refund cash or send to an overseas bank account.
- Never accept payments greater than the value of the transaction. A common scam is for fraudsters to ask businesses to pay for third-party services such as shipping through a company of their choice.
Adding more ways to pay
Paying with a contactless card or device is more secure than paying with a magnetic-stripe credit or debit card. This is because contactless cards were specially designed to transmit data and feature robust built-in security elements that these older cards don’t.
When customers get to the checkout, they simply open their payment app or wave their mobile device over contactless terminals. So, don’t get left behind
Buy Now Pay Later services are also growing in popularity with customers for in-store and online purchases. These services allow customers to buy what they want today and pay it back in interest-free instalments, so it’s worth adding these options to your offering to add even more flexibility.
If you have more questions about contactless payment or anything questions about your business, Diamond’s Business Services Team is here to help you.
