How can shop owners embrace contactless payments at their stores?

27 November, 2024

Synopsis: 

• The world of online payments has grown. This growth has led to the increased adoption of contactless payments.  

• Small businesses must adopt contactless payments to reduce transaction times and offer enhanced customer experience.  

• The most efficient ways of adopting contactless payments are through websites, mobile applications, Tap N Pay, and Scan and Pay. 
  
  

Introduction 

The eCommerce and online shopping sectors have grown significantly. This growth has increased the demand for contactless payment solutions. The pandemic further accelerated the popularity of this already expanding payment system.  

Contactless payment technology has become a must-have for restaurants, shops, and businesses. It is a powerful solution to drive business efficiency and build a strong customer base. Consumers are increasingly searching for businesses offering this payment option. Sometimes, they switch to a store that has adopted touch-free technology.  

This article explains the meaning and benefits of contactless payments. It also describes the different ways of setting up contactless payment systems.  

Understanding contactless payment methods 

Contactless payments, or Near-Field Communication (NFC), is a payment method wherein the customer does not need to get in touch with the merchant to complete the transaction. Globally, grocery stores, restaurants, cafes, retailers, and pharmacies have adopted the payment system. It eliminates the need for consumers to take out their Credit Card and insert it or swipe it in the card reader to complete payments.  

Also Read: What is contactless payment and how does it work? 

Contactless technology systems wirelessly transfer data from your device to the payment terminal through Radio Frequency Identification (RFID) technology. The communication between the devices is possible when the distance between them is a few inches apart. The technology is similar to the electromagnetic waves between devices in Wi-Fi communication.  

Benefits of implementing contactless payments in your shop 

1. Safe and secure payments 

Contactless technology delivers a safe and secure checkout experience for business owners and customers. A magnetic stripe uses pins to complete transactions, providing better encryption and security. Businesses can rest easy knowing hackers cannot steal their information, and the chances of fraud are low. 

2. Enhanced customer satisfaction 

Contactless payments are processed within a few seconds, leading to a better checkout experience. A better checkout experience translates to enhanced customer satisfaction, which leads to more customers trusting and preferring the brand.  

3. Quick and convenient payments 

Contactless payments reduce transaction times for business owners. They improve the business’ overall operational efficiency. This allows the team to devote more time to other critical business activities like inventory management, strategic planning, marketing, etc.  

4. No additional setting-up cost 

There is no additional fee for retail contactless payment adoption. You pay the same rates you were paying for a regular Credit Card transaction. 

Setting up contactless payment systems 

The four most effective ways of setting up contactless payment systems for small businesses are: 

1. Through websites 

If you have a business website, you can offer a contactless payment solution to your customers by integrating with a payment gateway. Clicking the checkout button redirects customers to the payment gateway’s website to choose from the different payment methods.  

Also Read: A Step-by-Step Guide to Choosing Your Payment Gateway 

2. Through mobile applications 

Many businesses have customised mobile applications. Integrating contactless technology on the app enables customers to complete purchases on the go. This feature enhances customer convenience as they don’t need to be at home or physically close to the merchant.  

3. Through scan and pay 

Scanning a Quick Response (QR) code is another cost-effective way of receiving online payments. It offers convenience and ease to customers and businesses. There is no complex contactless transaction setup. All you need to do is generate a QR code using your mobile device and place its printout on your billing counter. You can also share the code digitally.  

4. Through Tap N Pay 

Tap N Pay is another innovative way of adopting contactless payments. It requires a Point of Sale (POS) machine. Customers can complete the transaction by tapping their payment card, wearable device, or smartphone. 

The popularity of contactless methods of payment is increasing due to their speed, convenience, and comfort. This growing demand indicates that businesses must learn how to adopt contactless payments. It is the need of the hour to fulfil the customers’ needs of today and the future. Moreover, it is a more beneficial method for businesses to accept customer payments and helps increase operational efficiency.  

Integrating contactless payment systems for small businesses is easy with HDFC Bank. All you need is an NFC-enabled POS machine to accept customer payments quickly and securely at your location.  

Disclaimer: *Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.