Contactless Payments: Top Benefits & Service Providers

Contactless payment is an efficient way of making purchases without handing over the card to another person or swiping it through a machine. The inclination toward the adoption of contactless payment has propelled substantially among people, especially after the emergence of the Covid-19 pandemic, as a primary mode of transaction. A recent study has cited 16% CAGR for the contactless payment market in Asia-Pacific during 2021-26.

This type of payment uses technologies like Radio Frequency Identification (RFID) & Near-Field Communication (NFC) and provides secure & convenient transactions. However, the retailers must be equipped with the technology to accept such payments. Contactless payments have several benefits, owing to which their prevalence is expanding substantially. Let’s have a look:

Significant Benefits of Contactless Payments

1.       Speedy Transactions

Contactless payments work much faster than usual payment methods and take nearly 5-10 seconds to complete a transaction. They are highly convenient, as they do not pile up ques at shops but provide an efficient shopping experience for customers.

2.       Efficient & Effortless

Since contactless payments work with technologies like NFC, it allows user to effortlessly make a transaction using smartphones, laptops, tablets, and other devices when in close proximity.

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3.       Payment Security

In case a person loses its card, they can quickly request their bank to freeze the card and disregard & amend further payments. Such payments have built-in protection that makes sure the same traction is not occurring several times by accident, along with other security features. 

4.       Increased Revenue & Brand Positioning of Banks

Banks offering contactless payments to customers promote enhanced customer service with added value & benefits to expand their customer base and differentiate from competitors.  

5.       Improved Customer Experience

Owing to the faster, secure, & effortless transactions through contactless payment methods, customers tend to shop more freely without worrying about the amount of cash available. In fact, they feel more convenient in making contactless transactions to avoid the exchange of cash, especially since the Covid-19 pandemic. 

Popular Examples of Contactless Payments

So far, we have understood the contactless payment technology & its various benefits. Let's head toward some examples that support such transactions. Apart from banks & other financial institutions, several third-party companies also support contactless payments through NFC technology. Some of the prominent ones are mentioned below:

·         Apple Pay

The iOS-based application stores the details of the credit & debit card of the user to make contactless transactions or online purchases. The app also allows the user to send & receive money across friends & family efficiently.

·         Google Pay

This application has observed a swiftly rising adoption in recent years. It allows the user to make payments using an encrypted number of the retailer. Besides, the user can also send & receive money using the application, earn rewards, and benefit from promotions.

·         Samsung Pay

The application has features similar to that of Apple pay & Google Pay, offering cashback, rewards, promotional coupons, and other benefits to users and facilitating contactless payments.

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Takeaway

These were just a few of the many benefits of using contactless payments. Yet, their adoption is gaining immense traction. As a result, several organizations are planning to establish such technologies to expand & strengthen customer loyalty while gaining a competitive edge.