Do you offer your customer’s the option of payment with NFC or contactless mobile payments? IF not, why? If you do, are they using it and are you using it to its full potential?
Apple Pay, Samsung Pay, and Android Pay are leading the industry in digital wallets which allow consumers to use their smartphone to pay for goods and services. These digital wallets store the consumer’s cards in digital form, when a purchase is to be made the customer simply has to either hold, wave, or sometimes tap his or her phone to the business’s credit card terminal or register.
We’re seeing the most use of mobile payments at the types of business that people frequent for their errands. Places like grocery stores and coffee shops where people want to just run and quickly get what they need and move on. But adoption by the majority has been at a much slower pace than the providers would like. There’s also the reluctance of a large part of the population to adopt the new technology. There has been a solid association between age and reluctance to adopt new payment technologies into the market. Baby Boomers and Gen X still like to use plastic cards. They are more apt to put their credit cards in a case on the back of their phone than in their phone. One of the reasons for this is that older people tend to believe that this new technology is less secure making them less likely than millennials to adopt new technology.
One of the keys to tempting more people into using mobile payment capabilities is to have it offered literally everywhere they go. Once something becomes perceived as commonplace, people tend to feel they’re behind the times if they are not using it.
Since it is estimated that by the end of 2017 there will be 3.4 billion smartphones equipped with the technology per IHS Markit estimates, and that number is expected to increase to 5.3 billion by 2021 it is high time it became commonplace.
Given that Apple, Samsung and Android lead the market in mobile wallet technology it will be up to these mobile wallet providers to inform their members of the advancements in security and that they will still benefit from features such as fraud protection and others that they already enjoy with their physical cards.
But, it is also up to the merchant to educate their employees on the benefits of the mobile payment so that they can better direct the customer. The cashier is oftentimes the direct connection between the business and it’s customer. If a cashier can help to educate them on the security of the technology and also help them to feel comfortable using it then they have created a satisfying buying experience and likely gained a devoted customer. Win-win.
So, what are the benefits of contactless payments?
Merchants should look at this technology as much more than just a way to offer another form of payment for their consumers. There are many benefits to both the consumer and the business when the capabilities are utilized to their full potential.
When your customer sees that you are mobile payment it gives them the perception that you care about staying up with the latest technologies , that security is of the utmost importance and that your business puts high value on the customer’s experience. Contactless payments can help the merchant engage more with their customer enhancing the customer experience.
Consumers are always looking for satisfaction and sometimes that comes in the form of a quick and painless checkout. After all, they are already spending their hard earned money the last thing they need is for it to be a pain to do. Contactless payments means that the customer doesn’t have to carry the actual card with them, they don’t have to reach into their purse or pocket to dig it out and swipe it. Tapping their phone, which most people walk around with already in their hand anyway, is much faster.
Even the process of executing the transaction is faster, like lightning fast compared to EMV chip cards. While the EMV chip card is offers us much more security than their old counterparts, the time it takes for the transaction to be communicated tests everyone patience. The swiftness of NFC allows for a much more pleasant experience for your customer while also reducing wait times and long lines at your business.
Something as simple as offering emailed receipts even has many advantages to both the business and it’s customer. Reduce the waste of paper while reducing clutter in your customer’s wallet, and an emailed receipt means they will always be able to find it if needed instead of searching around in some bag they threw away.
Mobile payment applications can even allow merchants to connect with their customers on a much more personal level. While it is a way to offer them more payment choices and convenience it does not have to be just for paying for an item. Data and analytics collected from customers about their purchase habits and choices can be used to give them a much more personal experience. Instead of creating a loyalty program where the same offer goes out to all the members, imagine if your business could tailor offers to meet a specific customer’s needs, sending them a coupon or offer based on past purchases. Sometimes these incentives can even be sent to a customer while they are in the store possibly leading to increased sales. When a customer feels like you “get them” they are much more likely to develop brand loyalty. They will keep coming to you because they believe you know and have what they need.
Contactless, or digital payments, offer the security your customers want.
Mobile, or digital wallets use of NFC technology allows for a much more secure transaction.
When the two devices are placed in close proximity to one another a random one time use code is generated, this is known as tokenization. This code makes for a more secure transaction because there is no exchange of the actual credit card number making it much more difficult for hackers to acquire. When you combine tokenization with other security elements such as fingerprint biometrics and secret PIN (personal identification numbers) and remote data wiping capabilities it can provide even greater encryption than chip cards.
While there may always be an element of society who will reject all the new payment options, you as the merchant can help to shrink the demographic. Prominently display that you are mobile payments compatible either near your point-of-sale or even directly on your terminal. Even if they choose not to use it it helps to create awareness which in turn leads to familiarity. Educate your staff so that they can help to make your customers feel comfortable using the new technology.
How to take contactless payments as a merchant.
In order to make sure that your business is mobile payment ready you will need a terminal with NFC technology which will allow you to multiple types of digital wallets. Your terminal is just one part of your entire merchant services solution though so it’s important to work with a reliable and trustworthy company. Bankcard Brokers has been providing a wide range of industries with cost effective solutions for over a decade. Our reputation for integrity, transparency and outstanding customer service has earned us the designation as a leader in the payments industry.
All of our agents have earned the prestigious ETA certified payment professional certification, ensuring that they are incredibly knowledgeable about all aspects involved with providing merchant services. Contact us today to get started with accepting mobile payments.