How European Businesses can Benefit Going Contactless?

Banking CIO Outlook | Thursday, July 09, 2020

Europe is pioneering the way in contactless payments, the new way for business success. Here is an exploration of the key business benefits of going contactless.   

FREMONT, CA: Contactless payment technology continues to prosper as the most widely adopted form of electronic payment in Europe, with a significant majority of card transactions being contactless. Increased adoption of contactless payment technology demonstrates European consumers’ enthusiasm to embrace innovative technologies as they opt for trusted convenience. The number of customers using contactless is steadily increasing as technology takes a more prominent role in everyday life. Reports support the undeniable rise of contactless usage across Europe with a 97 per cent increase in contactless transactions till 2018. Contactless payments provide an opportunity that European business can’t afford to ignore. In the modern business landscape that is increasingly focused on the customer experience, avoiding this trend seems risky. Here is a look at the advantages that contactless payments offer for businesses.

• Frictionless Payments

One of the complaints about EMV chip technology is the added time that transactions take. Contactless payments remove this friction and give users a better buying experience. Contactless transactions are faster than cash and card payments. With contactless technology, businesses do not have to watch customers dig through their wallets, trying to find their debit card or wait for them to enter the personal identification number. Also, businesses do not have to count back change for customers, speeding up the purchase process. Retail companies can take this one step further by eliminating customer receipts. Also, faster transactions with contactless payments can result in the store needing fewer employees at counters during peak business hours.

• Improved Customer Satisfaction and Loyalty Programs

European businesses know that they have to focus on the customer experience above all to emerge successful. As waiting time decreases, customer experience and customer satisfaction tend to increase. This trend makes contactless payments ideal for businesses which tend to have longer customer wait times. European companies that embrace contactless payments are demonstrating that they value staying updated with payment technology. Studies show that customers who use contactless payment systems show higher loyalty toward businesses that accept contactless payments.

Customers always like to join loyalty programs that offer them value and convenience. Contactless payments are a powerful marketing and loyalty platform, with digital loyalty programs rewarding customers for making contactless payments.

• Reduced Fraud

In contactless transactions, the card never leaves the customer’s hand. Besides, the chip technology utilised in contactless payments is more secure than other forms of payments. Given that fraud losses on contactless cards remain consistently low, allowing businesses to gain customer trust. With tight security in place, businesses can rest assured that they will avoid possible chargebacks and continue to maintain a positive reputation with customers.

• Cost Reduction

Using contactless can actually reduce costs for businesses and encourage customers to spend more. With the introduction of contactless payments, businesses can increase the productivity of staff by reducing the time it takes to serve each customer. Since the contactless payment limit in Europe has risen recently, the average spends using contactless has also increased. Contactless can save firms money and increase profit.

Given the rising adoption of contactless payments, businesses across Europe are beginning to prepare to adopt this technology. By investing in contactless payment systems, firms are investing in the future of the business and meeting the needs of their customers. The overall business benefits of contactless far outweigh the cost of implementation of the contactless system and should be seriously considered by all businesses. Contactless technology is the new norm, and all firms should upgrade to avoid being left behind.   

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