Contactless Payments: Retail’s New Normal
The pandemic crises that have raised due to covid 19 certainly have turned to be a wake-up call for most of us. Our lives are certainly changed and we are now accepting the new routine which is to stay at home as much as possible. With the use of sanitizers, masks, and the protocols that need to be followed for social distancing our daily lives have changed to a great extent.
Besides, business is also now adopting the norms of social distancing to survive in the market for quite some time. To switch to a social distancing mode has been quite challenging for the retail industry that specifically was relying more on the cash transaction and other modes of payment. This also includes the physical touch.
The retail industry is one fine example that has found its survival in the form of contactless payment. Let us explore how Contactless Payments solution has been turning out to be the best for new normal for the retail industry.
Customer’s expectations from Retailers Post-COVID
More than half of the retail customers are now opting for contactless payment through mobile phones, smartwatches, and even contactless debit cards for avoiding exposure against Covid 19. As per the research made, more than 50% of the US customers has made the contactless payment at least 4 times while 70^ of the customers still feel that payment in cash is much more convenient.
There is hiver, no denial to the fact that customers are quite concerned about the virus transmission but don’t want to completely give up on the touchscreen. The customers certainly expect the retail industry to have little flexile and when it comes to Payment solution for the retail industry such as InterAction through touch the kiosks, digital signage, and mPoS solution needs to reduce the danger of face-to-face interaction with retail associates
New Normal” For The Retail Industry
Improved operational efficiency
With Cashless payment solution, at least the retail industry shall have improved efficiency at an operational level. There will be fewer workforce requirements. Besides, the research shows that contactless payment can take less time say around 12 seconds if you compare it to the cash or card traction that shall take around 30 seconds or 35 seconds respectively. This certainly has lessened down the time results in a short time and increased revenue too.
Better experience for the customers
The focus of the retailers to offer contactless Peer to peer payment solution is to give customers a quick yet smooth checkout solution. This virtually works as a platform to earn the loyalty of the customers too. There are retail stores that improve the customer r simply by loyalty program optimization
No extra pricing
Retailers don’t have to take any kind of extra pricing or even the processing fees to set up the contactless payment solution. Retailers rather must pay the same fee that shall be best suitable for a regular credit card transaction.
Protection against fraud
The risk of hacking and fraud is common. But when it comes to Scan and Go payment solution that is well integrated with strong encryption technology, then for retailers every transaction is secured. As such cutting-edge platform protects all the money detailing secured from frauds and hackers.
Since contactless payments are gaining quite popularity already, it is quite obvious that contactless payments in the future shall have quite a strong impact on the retail future. Even though cash shall not be going anywhere currently but transactions that don’t need any kind of physical contact shall be more convenient rather more preferred by the customers.
Those retailers who offer the contactless service are likely to be appreciated for the ease and speed of the payment they offer to the customers. Those who shall be keeping up with digital trends will eventually keep the business afloat. By this, it not just means surviving in such a challenging time but also making the payment hassle-free.
With such contactless payment, retailers can explore different marketing platforms such as loyalty programs, marketing based on location, and using mobile couponing that can grab more attention of the customers.
Transaction size limitations
With contactless payment, the requirement of signature of PIN is not needed since the size of the transaction itself is limited. The exact amount which a cardholder shall spend can vary as per the country, the card issuer, and the bank. Often the merchants as well.
If merchants want to restrict and protect fraudulent transactions that can even set down the limit for contactless payment. With a focus to reduce covid 19, companies like Visa and Mastercard have started with spending limited for large transaction size. This can range from 35 to 400% with a contactless limited rise of 130 percent.
The feature to get the virus of Covid 18 has turned out to be increasing more than the virus itself. People are looking for ways to avoid cash payment and choose the contactless option. Besides they are even likely to visit the retail store if the payment option is contactless. besties, even retailers have responded to such shift in customer behavior by accepting the payment mode contactless.
The customers are not the ones who are more concerned about their health. Rather employees who have been working in the retail industry are also aware of the risk related to Covid 19 varus while handling deals in cash and credit. Hence, three are retailers who have finally decided to reject the entire physical payment instruments and choose contactless options such as NFC card, P2P payments apps to name some.