bankingciooutlook

Key Benefits of Contactless Payment

Banking CIO Outlook | Thursday, September 22, 2022

Faster transactions and shorter queues at the checkout are the most significant advantages of contactless payment.

FREMONT, CA: Within the contactless payment arena, the smart card or contactless card is the most adopted mode of payment. It is possible to use them in many ways, such as credit and debit cards, smartphones, smart cards, key fobs, or wearables. Contactless payments can be made using Samsung Pay, Apple Pay, Google Pay, Fitbit Pay, and any other bank mobile application that supports contactless mode of transaction.

Speed

Contactless payments take 15 seconds and are twice as fast as standard cards. Less cash processing and handling speed up transactions, improve turnover and reduces lineups. As pin codes are no longer needed and transactions merely require a tap on a scanner, workers can redistribute to improve customer service and retail experience.

Secure

If a customer loses their card or gets stolen, they can quickly freeze the account or notify their bank, which will cancel unauthorized charges. As the card merely needs to be tapped, the danger of fraud or theft is more significant. Built-in protection ensures that the same transaction doesn't happen twice by accident and that card data and numbers cannot be decrypted if intercepted because unique numbers are used for transactions.

Effortless

Contactless payments aren't tied to simply cards. NFC readers may interact with phones and related accessories like watches and rings. For instance, Apple Pay's 2014 introduction allowed consumers to pay by phone if they had misplaced or lost their card. The Apple Watch advanced this. Customers can also pay without removing their card from their wallet, making the transaction easier.

Customer satisfaction

When customers aren't limited by the amount of cash they carry and the efficient payment procedure, stores can enhance throughput and reduce abandoned purchases. For most contactless transactions, no verification or receipt printing is required unless the customer requests it if the transaction is high-value. This reduces the checkout time.

Brand positioning and increased revenues

By offering contactless solutions, banks improve customer experience, offer added-value services, and differentiate from competitors. New contactless smartcards, like metal cards, can target VIP and rich clients.

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