Contactless Payment Options [& How To Choose The Best One For Your Business]
There has been a substantial shift in how consumers pay for things just over the last year. In light of the coronavirus pandemic, many brick-and-mortar businesses opted out of accepting cash for safety concerns, only allowing card payments. Yet, many wondered if there were different types of payment options that didn’t consist of handing plastic back and forth between two people or jamming it into a point-of-sale terminal where thousands of other cards have been.
Some stores, coffee shops, and hotels offered some form of contactless payment, but they were selective in what type they accepted. Now, card readers at many grocery stores don’t only just accept touchless payment; they also offer multiple options. Even e-commerce businesses are joining in, offering various ways to pay that don’t require the buyer to enter in their card info on-site. Before selecting what contactless payment option you should provide for your customers, let’s break down what different types of payment options are available, and which are the most suitable for your type of business.
1. Digital Wallets
Apple Pay, Samsung Pay, and Google Pay are all examples of digital wallets. They allow people to add their debit and credit card numbers to this mobile wallet, making checkouts a breeze for things like online shopping and paying bills. Some restaurants can accept digital wallet payments, allowing the consumer to simply tap their phone to the nearby point-of-sale terminal to complete their purchase.
Often, a facial or finger recognition scan will take place on your mobile device to verify it isn’t fraudulent use. Digital wallets have come a long way over the last year, but there is definitely room for growth with this touchless payment option. These business types would most benefit from digital wallet payments:
• Bill Payment
2. Contactless Cards
Today, many debit and credit cards are contactless payment-ready with RFID technology embedded into them. While credit companies and banks had started distributing contactless cards prior to COVID-19, not many places accept contactless payment because they didn’t have compatible devices. Now, businesses are scrambling to do whatever they can to ensure they can accept all types of payment methods in order to bring in customers and revenue.
Businesses with a steady flow of customers coming in and out, like a coffee shop or a grocery store, might find contactless card payments to be very popular. The relatively average cost of the purchases here, and people’s desire to get in and out quickly while staying away from others as a precaution, makes this a great contactless payment option.
Many credit card companies have a maximum amount that people can spend on contactless transactions for safety reasons, with Mastercard’s standard max amount being $200. Given the limits, this payment is best for these types of businesses:
• Retail stores
• Coffee shops
• Casual dining
3. Third-Party, E-commerce Payments
A lot of online shopping has commenced over the last year due to mass lockdowns and the closures of many non-essential stores. At one point in life, when you were perhaps browsing for a chair from your favorite furniture store or a hot tub you’ve been dreaming about, the checkout options were probably limited to one thing: a credit card.
With the influx of shoppers that headed online in light of the pandemic, the e-commerce world knew it needed to offer more payment options to suit everyone’s preferences to ensure the business would keep rolling in, while also meeting demand. Now, if you’ve been paying attention, you might have noticed different types of payment options available. You can choose to pay through vendors like PayPal, Afterpay, and QuadPay to seal the deal on the items you love.
Payment redirects allow consumers to sign into the platforms and confirm their purchase. This way, they won’t have to worry about giving their payment info to yet another website, since many are skeptical about using their credit or debit cards for fear of fraud, especially during a pandemic.
Third-party vendors aren’t just used for online shopping payments. There are mobile parking apps tailored to specific cities that allow people to sync up their bank accounts or credit cards and pay for parking from their phones. No more touching filthy meters or typing in your card information on a heavily-used keypad. Here are a few businesses that should consider teaming up with third-party payment vendors:
• E-commerce shops
• B2B companies
• City Planning
Even when this pandemic is over, contactless payments are here to stay and will evolve as time goes on. It’s not only more convenient, but also safer, faster, and cleaner. When it comes to contactless payment options, people want to feel physically and electronically safe accessing the things they need to get through challenging times.
Give your customers the peace of mind they deserve both in-store and online by using a Preferred Payments processing system for all of your point-of-sale needs.