The world is increasingly becoming a cashless society. More and more people are embracing contactless payments. There are numerous reasons behind this trend. Some of the main ones are increased security, improved ease of use, brand-agnostic acceptance, mobile-first design, etc.
Contactless payment options for small businesses have become popular between both customers and merchants thanks to the increased awareness about the benefits they bring.
Types of Contactless Payments
There are three types of contactless payments methods:
Near Field Communication (NFC)
This is the most common type of contactless payment. NFC uses radio frequency to communicate between devices, allowing payments to be made by simply touching two NFC-enabled devices together.
Radio Frequency Identification (RFID)
RFID doesn’t require any physical contact between devices. RFID tags are embedded in objects and can be scanned by an RFID reader from a distance.
Bluetooth Low Energy (BLE)
This is a newer technology that’s gaining traction in the payments world. It’s similar to NFC but doesn’t require any physical contact between devices. BLE uses Bluetooth signals to transmit data between devices.
5 Industries That Gain The Most From Contactless Payments
While contactless payments can benefit practically every industry, here are the top five areas where touchless payments will become more prominent.
The retail industry is one of the main beneficiaries of contactless payments.
A Mastercard study revealed that there was a 40% growth in contactless transactions in the first quarter of 2020.
This is because contactless payments are faster and more convenient than traditional methods like cash and cheques.
Plus, contactless payments are already widely accepted by retailers.
Contactless payments are also gaining traction in the hospitality industry.
Hotels, restaurants, and other hospitality businesses can benefit from contactless payments in several ways:
Increased security – Contactless payments are more secure than traditional methods like cash and cheques. This is because they involve fewer steps (swiping a card vs entering a PIN) and use less sensitive data (card number vs cardholder details).
Improved convenience – Customers find contactless payments more convenient than traditional methods, which can boost their satisfaction levels.
Faster transactions – A longer queue time means lower customers satisfaction levels. Contactless payments are faster than traditional payment methods so they lead to shorter queues and improved customer experience.
The transportation industry is another sector that stands to benefit from contactless payments.
Train and bus operators can reduce the cost of ticketing operations by implementing contactless payments. Plus, customers find contactless payments more convenient than traditional methods, which can lead to increased ridership.
Contactless payments can be used to pay for goods and services in the travel, sporting, and music industries.
Music festivals, for instance, are increasingly using cashless payment systems to allow customers to buy food and drinks at the festival without needing to bring large amounts of cash. This improves the overall customer experience and reduces queues.
Cinemas benefit from shorter queues and improved customer experience when they implement contactless payment systems in their theaters. Those who use public transportation to attend concerts and sports events can also benefit from implementing contactless payment systems in these venues.
Food and Beverage Industry
Restaurants and bars can also improve their customer service by offering contactless payments.
Contactless payment systems don’t require customers to wait for a waiter/waitress to take their order, which means that orders get placed faster. Plus, since there’s no need for the customer to provide their credit card, the risk of fraud is reduced.
This all leads to a more efficient and faster service.
Why Contactless Payments Are Here To Stay
As you can see, many industries can benefit from implementing contactless payments. While the technology is still relatively new, it’s gaining traction quickly and is sure to become more prevalent in the coming years. Contactless payments offer several benefits for both consumers and businesses. The advantages of contactless payments include increased convenience, speed, and security. Contactless payments can also help retailers boost their sales by 15-20%. If you want your business to benefit from this new technology, get in touch with a payment solutions company that can guide you through the process.
Sunvera Software develops next-level software applications from start-to-finish. We are a premier software and mobile app development agency specializing in healthcare mobile app development, custom mobile app development, telehealth software, sales dashboards, custom mobile app development services, retail software development, supply-chain software, ecommerce, shopify, web design, iBeacon apps, security solutions and unified access software.
We are proud partners with Amazon AWS, Microsoft Azure and Google Cloud.
Schedule a free 30-minute call with us to discuss your business, or you can give us a call at (949) 284-6300.