Adopting contactless payments is not something to put off.
Since mobile payments are no longer the wave of the future, but very much front and center, here are 5 reasons it’s as good a time as any for you to start accepting contactless payments in your small business.
1. It’s Faster
Foregoing the swipe (or dip) and opting for contactless payments is one of the easiest and most efficient ways to speed up transaction times at your business. The most prevalent form of contactless payments is known as Near Field Communication (NFC). Some of the major mobile payments providers, such as Apple Pay and Samsung Pay, use NFC.
But why does the use of contactless payments and NFC speed up transaction times? Take a look at the name: “Near Field Communication.” Think of it this way: by having two electronic devices near each other but not directly touching, you skip the process of customers handing you their credit cards, or taking the time to dip or swipe them themselves. They simply hold up their smart phone, Apple Watch, or other connected device, and bring it within a few centimeters of the merchant’s contactless terminal.
Studies have shown that the use of contactless payment drastically reduces the time it takes for a merchant to complete a transaction. The time customers spend at the point of sale is reduced by 30 to 40% percent. While, contactless payment is 63% faster than cash transactions, and 53% faster than traditional credit card purchases. This means that long lunch line that starts to wrap around your store at about noon, gone. Holiday lines in December that clog your store and make it hard to customers to maneuver display, gone.
Consequently, this decrease in transaction time leads to an increase in number of transactions, smoother store operations, and happier customers. And what merchant can’t get on board with the idea of increasing sales?
2. Customers Expect It
It’s time to safeguard from losing business. It’s no secret that customers know what they want and expect to get it. And , they should! It keeps merchants on their toes and always striving to provide a better customer experience. But it also means that besides carrying a sweater in every color of the rainbow and in every size available, customers also expect merchants to be on top of the latest technology trends.
If a customer adopts Apple Pay, that means they want to use it and expect the stores they frequent to provide them with that option. At the end of the day mobile payments are a convenience for customers. And if you don’t show the customer that their convenience matters to you, they’re bound to eventually take their business elsewhere.
3. They Have a Coolness Factor
We hate to say it, but often it’s an issue of vanity. Consumers want to look cool and when using mobile payment they do. To make that happen, merchants need to adopt contactless payments and look the part themselves. It might sound petty to some, but take a step back and think about your demographic. Are you a coffee shop in the heart of a college town? Maybe you’re a trendy boutique on Main Street frequented by Millennials. Either way, appearances for these demographics matter. Take a look at who your customers are. If they fit the profile of patrons that are likely to be concerned with using the latest technology, chances are, it’s time to make the switch to contactless payments.
4. It’s a Growing Trend
With a growing number of wearables coming onto the market, contactless payment is not only holding its own but increasing in popularity. In the past year, the worldwide market of wearable has increased 67.2% and shows no signs of slowing down. A recent online survey of 1,000 U.S. adults revealed that 49% reported owning a wearable device, while 36% said they owned more than one.
Wearables are as diverse as the people that buy them and go far beyond your typical FitBit or Apple Watch. New and interesting payment methods are popping up daily and it’s up to merchants to be able to accommodate this growing segment of customers. Losing out on these sales can potentially put a large dent in your profits. So why take the risk?
5. You Have to Start Some Day
We’re not much for peer pressure but… Waiting until next year or until you receive some divine sign is not a good idea. It might not happen today (or even tomorrow) but eventually, your lack of contactless payment adoption will begin to eat away at your profits. A few missed sales here and there might not seem like a lot at first, but over the course of the next six months, it could add up to significant cash. So why wait until you’re undoing your mistakes of the past? Get on board now and increase sales, opposed to recovering your losses.
Like we mentioned earlier: now is as good a time as any to start accepting contactless payments. Now that you have the ABCs on why you should, how soon will you start?