Every merchant will know that one of the UK’s most popular payments methods is now the chip and PIN terminal. This is easy to understand: it’s quick, exact and doesn’t require consumers to carry wads of cash everywhere that they go.
However, contactless card payments are also becoming increasingly popular, and have some major advantages over more traditional methods. With all of the benefits of the aforementioned technology, they speed things up still further, lower the costs of payment handling and reduce queues.
So could a contactless machine benefit your business?
What is Contactless?
Contactless card payments are a means of paying by card that were introduced to speed up transactions. The consumer pays for items with a simple swipe of their credit or debit card across a specialist terminal, like those supplied by Card- Cutters. They do not require entry of a PIN number of insertion of the customer’s card, and are limited to payments up to £20 in value.
The Benefits of Contactless Payments
There are a multitude of benefits open to those merchants who invest in contactless technology.
It Boosts Revenue
The key consideration for many businesses is whether investing in new technology will have a financial benefit, and in the case of contactless, the answer is ‘yes’. When consumers have the option to pay by any type of card, research has shown that they will almost always spend more and conduct more transactions. There is further research to suggest that those who hold contactless payment cards will actively seek out merchants who accept them. With over 48 million of these cards currently in circulation, this offers the opportunity to really boost your revenue.
Lots of Customers Can – and Will Want to – Pay this Way
Contactless card terminals are a type of technology that most consumers can already use, whether they realise it or not. Over 48 million cards in the UK are compatible, and one third of consumers are already turning to contactless as a payment method; investing in this technology means that you can meet their needs.
It Reduces Queues
Contactless payments are the quickest transactions to conduct, which means that offering these as a payment option significantly reduces the time it takes to be served, not only for the initial customer but also the ones behind them. Not only is it quicker to avoid dealing with money or typing in a pin, but these transactions also tend to go through more quickly – in under a second, according to figures from the UK Cards Association.
Less Cash Handling is Required
Although this may seem like a minor benefit, there are a lot of advantages attached to not having to handle as much money. Along with the time saving aspect mentioned above, there is also less potential for mistakes that will slow you down and negatively impact your customer service. Less time will also be required for accounting purposes, such as cashing up and keeping track of earnings. The audit trail that will be created is a major benefit, too, when it comes to calculating your taxes.
For companies that handle food, less time will need to be devoted to stripping off gloves, taking money and then putting new ones on – a small difference, but one that can save a large amount of time over the course of a working day.
On the rather compelling basis of its benefits, could a contactless payment terminal be the next addition to your business?