Cashless payment is not a new concept for the world. Before the COVID 19 epidemic, it was into existence. But after the epidemic, it has brought some new change which is called as contactless payment. In the card payment method there is no physical money transaction but there is a requirement of entering the PIN. The customers are required to touch the reader to enter the pin or insert the card.
Most of the developed countries are shifting to the contactless concept which eliminates the touching part. Consumers are now ready to pay using a secure cashless payment system with all contactless scenarios. Additionally, merchants are ready to accept the same. It vanishes out all the demerits which are associated with the cash transaction.
Do Accepting Cash Costs high?
Of course, accepting the cash requires little extra effort and cost as well in the following manners.
- There is a requirement of registers for accepting the cash. The sufficient amount of cash and coins are always required by merchants to give a change to the customer.
- The counting of coins is another factor which consumes time. Instead of a peer to peer payment solution, it requires some physical effort.
- There is a need for diligent accounting for the cash. It must be kept in a safe place. Additional bookkeeping is a part of when transferring cash to register from the safe store.
- Cash always requires an extra layer of security. The alarm system, door access control key and camera are the common part of this story.
What is a Touch Less Payment?
In the contactless payment, the user has to place the card over the payment terminal. There is no need to insert the card or enter the PIN. This simply means the consumer will not touch the payment machine. The mobile money payment solution will eliminate the physical contact between the consumer and machine. The other name of this process is ‘tap and go’.
In the contactless payment method, there is the use of Radio Frequency Identification (RFID) and near field communication (NFC) technology. It is more secure and fast than any other means of payment.
There is a point of sale terminal at those merchants which accept touchless payment. There is a special symbol associated with that point of sale terminals. When the consumer brings the card close to the terminal, the information is transferred electronically. All the information is fetched from the chip. When the payment is accepted, the green light will beep.
How should merchants choose the best touchless payment solution?
Merchants should look in 360 degrees to choose the best touchless payment solution. Usually, merchants get confused with it. For the best solution, the merchant should contact the software development company.
Only the experienced development team can offer eWallet app development. Make it sure that the solution virtually offers all the things. The solution should come out clean to the consumer. Only in this way, the quality payment solution can be gained. The professional should expand merchant payment processing. A lot of payment options matter a lot for the consumer.
Impact of touchless payment on the merchants:
The integration of the touchless payment to the merchant payment processing has brought many new things in the market. It directly or indirectly positively affects the merchants.
The various advantages of the cashless payment are as follows.
Save the time: The contactless payment saves the time of the merchant to the great level. It is because checking the bill, giving the change to the consumer is not involved in this process. The approximate time of processing is 15 seconds in the contactless credit card.
Attract more clients: The technology-based merchant payment solutions always open the doors for new clients. They attract the customer because a consumer always needs a convenient, effective and a secured way to make the payment.
In the coming time, customers will seek a fast, secure and efficient payment method. So only those merchants who hold secure merchant payment services will be able to gain the customer’s attention.
Loyalty programs are improved: Contactless payment is a powerful tool for increasing loyalty programs. It is easy to give reward to those customers who are using the non-touch payment. So for professionals who are interested in giving reward to their customer has contact with less payment as a good option.
Security: As per the survey about one-third of the merchants believe that technology-based payment is secured. It also creates a safe feeling instead of following the cash transaction. The contactless payment uses RFID and NFC technology and it is the safest than any other payment method.
The benefit to the environment: The cashless or the touchless transaction not only beneficial to the consumer and professional. It equally benefits the environment too due to less plastic use.
Increase efficiency: The new and advanced payment method will hike efficiency. The benefit of contactless payment is superior to that of magnetic stripe cards. It offers more protection to the user because the contactless credit cards are hard to hack.
Reduce human errors: The involvement of cash management is always prone to human errors. With reduced human involvement, there will be less chance of mistakes done by a human. When things are done manually there are common errors which sometimes bring out heavy losses.
Are there some demerits of contactless payment?
Contactless payment is also having its limitations. Well, this technology will only work on that mobile app which has e-payment apps. The limit per transaction will be chosen by the bank which the customer could not change.
In case if the contactless card is stolen or misplaced then the customer has to make it block as soon as possible. It is because the thief could easily take the advantage of your card and misuse it easily.
Verdict:
Contactless payment could be like a boon for merchants and consumers. It brings out many benefits with good impacting on the business as well. Consumers are seeking for the best solutions which are secured and convenient. So any professional should choose the good software or the app which offers a smooth service.
The contactless payment solution will help in business growth. At present this ‘tap and go’ concept is common in some parts of Europe, Canada, and Australia. But soon it will be a part of the whole world.