What message does your point of sale send to customers? Are you communicating your focus on security at the terminal? If a customer wishes to pay with a digital wallet, can you accept it? The end user experience has a strong influence on how a customer will remember their interaction with your business. Contactless payment technology gives merchants a great opportunity to improve their customers’ experiences at the point of sale, especially as consumer behavior evolves.
With greater bank support, digital wallets and mobile payments are growing in both adoption and use. According to Apple’s CEO Tim Cook, ApplePay usage tripled over the year in 2016, and transaction volume is up more than 500% year-over-year.1 MasterCard enabled over 800 million MasterPass accounts by the end of 2016.2 Visa payWave now makes a contactless payment possible through both cards and integration with ApplePay, AndroidPay, and SamsungPay.
Furthermore, most EMV-enabled terminals can also accept contactless payments via a contactless card or digital wallet, so merchants are poised to encourage acceptance and enhance their customer experience, too.
Here are 3 immediate ways accepting contactless payments can improve customer experience.
Exceed Customer Expectations with Contactless Payments
Accepting contactless payments sends a strong message that your business values staying up-to-the minute with payment technology and data security. As consumers adopt new payment technology, they actively seek it out at the point of sale. If you are able to meet this expectation, clearly display the contactless logo, especially at the terminal. Customers will appreciate being able to use their digital wallet.
Other customers will notice, too. Even consumers not yet actively using contactless payments are becoming more aware of the technology and are optimistic about its growth. According to a recent study, nearly 60% of North American consumers are aware of mobile payment options and also expect use to increase.3
Merchants can also assure customers that they are taking security seriously when the accept contactless payments. Near Field Communication (NFC) technology and secure encryption keep customer data safe. Staying on the cutting edge of payment technology also means staying on the cutting edge of payment security.
Reduce Payment Friction and Speed Up Transactions
One of the complaints of EMV chip transactions is the time transactions take at the terminal. While many consumers and merchants are growing accustomed to this longer transaction time, the faster option offered by contactless payments is even more attractive.
Contactless payments are fast and easy for consumers at the terminal. Apple recently noted that Whole Foods and Duane Reade are the brick-and-mortar retailers with the highest percentage of contactless payments via ApplePay.4 The other top retailers include coffee shops, grocers, and quick service restaurants. In other words, consumers are looking for ways to save time as they run their daily errands.
For merchants, keeping the lines moving quickly is a sure-fire way to improve a customer’s experience. Training your employees to accept and encourage contactless payments at the terminal will cut down on transaction times. Everyone waiting to check out will appreciate the speed!
Integrate Loyalty Programs and eMail Receipts
Innovative loyalty programs and paperless communication with customers are also a fantastic benefit merchants can enable with contactless payments. Customers are looking for value and convenience, both of which can be added with the advanced features of contactless payments and digital wallets.
One of the major ways merchants are pushing adoption of contactless, mobile payments is through loyalty and reward programs. Starbucks has lead the charge with their in-app payments, but as consumers consolidate their credit card and merchant rewards programs through ApplePay and MasterPass, merchants across the board can take advantage of the value-building prospects of a reward program coupled with these digital wallets.
Merchants also have the option of exploring digital loyalty programs like Perka, also available through the Clover app market. Building customer loyalty through a digital rewards program can encourage or even reward customers for using contactless payments.
Contactless payment users may also prefer paperless communication, too. Merchants can reduce transaction time even further by automatically emailing receipts to customers rather than printing a receipt. For customers seeking a simple, streamlined transaction may wish to avoid that extra piece of paper, too.
Integrity is dedicated to providing merchants with the latest payment processing technology, including the ability to accept contactless payments. Contact us today to learn more about our latest contactless payment-enabled technology, including the Verifone vx520 Contactless, PAX S80 and Clover Mini.
- Apple Financial Results Conference Call Q1 2017. (January 31, 2017) http://www.apple.com/investor/earnings-call/
- Hernandez, W. (February 3, 2017). Recent Earnings Reports Show the Future for Mobile Payments. Mobile Payments Today. https://www.mobilepaymentstoday.com/articles/recent-earnings-reports-show-the-future-for-mobile-payments/
- Boden, R. (September 5, 2016). US study reveals increased use and awareness of Apple Pay, Android Pay and Samsung Pay. NCF World. https://www.nfcworld.com/2016/09/05/347010/us-study-reveals-increased-use-and-awareness-of-apple-pay-android-pay-and-samsung-pay/
- Leswing, K. (2017, January 25). These Are the Stores Where the Most People Use Their iPhone to Pay. http://www.businessinsider.com/most-popular-apple-pay-stores-2017-1