Contactless payment is growing fast, with the UK Cards Association announcing that in March 2014, monthly spending on contactless cards had exceeded £100million for the first time.
Contactless transactions have tripled in a year, with 370 made every minute in the UK – that’s six every second.
So what’s in it for you and your business? Read on…
1. Quick sales. Queues are highly off-putting for customers as they test their patience and may even cause them to abandon a purchase altogether if they don’t want to spend time waiting. By offering contactless payment, which reduces transcation times to less than a second, queue times are drastically shortened, making your customers happier. During busy times, this allows staff the flexibility to serve more customers and process more transactions.
2. Spend, spend, spend. The maximum limit per transaction for a single use of a contactless card is currently £20. Research shows that the ability for customers to spend more than just the cash that they have in their pocket has led to an increase in the average basket spend. There is also an ongoing debate within the card payment industry as to whether the £20 limit should be raised in the future.
3. Save it. There is no more expense incurred by getting a contactless enabled payment terminal rather than a traditional chip and PIN model. Once it is installed, transactions won’t cost your business any more, in fact, debit card transactions will cost less per transaction than chip and PIN. What’s more, your paper consumption will be reduced as a contactless payment only produces a receipt if requested by the customer.
4. Let’s keep talking. The speed of contactless doesn’t threaten the human interaction involved in a business transaction – quite the opposite. With less time needed to discuss the mechanics of the transaction, more time is available for you and your customer to chat and build a relationship, which will encourage them to return and spread the word about your business.
5. Set the trend. Being one of the first to implement the new contactless payment system will put you firmly in step with your customers and put you one step ahead of your rivals. New technologies are constantly emerging so keeping up with what’s new is essential, and offering a payment method that the public have accepted so readily is the next step.
Andy Macauley is Chief Operating Officer of Handepay.