Contactless Payment Systems
The demand for contactless payments is on the rise and rapidly becoming the preferred payment method worldwide. Things have changed amid the spread of COVID 19. The use of contactless and digital payment methods requires less physical interaction. It is considered more secure than traditional payment options. Contactless payment terminals help to reduce the exposure to pathogens by eliminating touchpoints of physical payment terminals, credit cards, and receipts.
The COVID 19 pandemic has changed the way people work, shop, and play while forcing many businesses worldwide to adjust to daily operations. This shift in consumer shopping habits and increased health concerns relating to common surface touchpoints has led to a rapid increase in demand for contactless payment options.
Even after fears of COVID 19 start to fade, industry experts believe the rapid increase in demand for contactless payments will continue. Consumers are becoming more accustomed to the technology, and convenience is one of the many benefits. This shift in customer behavior of minimizing surfaces they touch in public is quickly becoming a new habit.
Contactless Payment Technology
When it comes to buzz terms, contactless payment is one worth paying attention to. The technology that drives these touchless transactions results in a lot quicker and more comfortable experience for the end-user. Consumers also have the option to utilize their mobile devices to process payments as well.
Contactless payments come in two primary forms, on a credit card or a mobile wallet. Mobile wallets, also known as app payments, utilize the contactless technology embedded directly into mobile devices.
Suppose you have a card or mobile phone equipped with contactless technology. In that case, all you have to do is hold it near the NFC capable card reader to complete your transaction. Keep in mind; most older payment terminals do not have this technology available.
Businesses may be smart to ride the tailwinds created by COVID 19 by upgrading their payment devices to capitalize on the trend.
Studies show that the usage of contactless payments has risen 150% since the pandemic began in early 2019. Even before the pandemic, consumers were starting to adopt contactless payments by using platforms like Apple Pay.
Contactless payments utilize radio frequency (RF) to transmit payment information from the embedded chip to a terminal device. Although many consumers may be familiar with making contactless payments with enabled mobile phones, not many know their current credit cards already have touchless enabled.
Security and Speed
Contactless payment systems often rely on near field communication (NFC). This newer and more complex technology utilizes existing RFID protocols. Unlike traditional RFID, which works within a few feet, NFC can only work within close proximity between the card and the reader. It must be within centimeters to work, so you don’t have to worry about accidentally paying for a stranger’s groceries as you pass them in the checkout line.
Experts generally consider the NFC technology that drives these payments to be secure. It utilizes the same security standards established by EMV chips manufacturers and considered effective at reducing fraud, including instances of counterfeit cards.
The contactless payment process transmits a unique, one-time token to the payment device for each transaction. This dynamic token doesn’t contain any of your card details. It reduces the chance of your data being intercepted and compromised. Even if someone were to intercept it, that token would become invalid and rendered useless.
This protection is an added layer on top of the same system used by inserting your card’s chip into a card reader. However, using the contactless payments process is much faster. Mobile wallets have an added security step before a payment is approved, requiring users to verify their identity with a PIN, password, fingerprint, or facial recognition.
For even more peace of mind, cardholders can check with their card provider to see what other precautions they utilize to ensure data security. Many of the major credit card companies offer dedicated FAQ sections on their websites to address any customer concerns about the safety of contactless payments. For example, Visa offers an in-depth look at the technology behind this payment method on their website. Apple Pay also provides a lengthy explainer on its popular support forum about the data encryption they employ.
More Convenient Ways To Pay
With the increased security and speed that touch-free payments offer, it’s no surprise that contactless payments has arrived and continues to gain traction in the marketplace.
Contactless payments provide a convenient way for consumers and retailers to conduct seamless and socially distant transactions, further reducing viruses’ ability to spread. The touchless payments systems are relatively maintenance-free and easy to set up. While touch-free payments were quickly becoming adopted well before the current health crisis, contactless payments will undoubtedly continue to impact the future of retail.
From tap to pay credit card and mobile phone transactions to in-app ways to pay for public transit, the current marketplace is primed for contactless technology to take off. Keep your business ahead of the trend by taking advantage of all contactless payment technology has to offer.
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Contactless Payment Systems Experts
Merchants looking to upgrade their outdated payment systems to touchless terminal hardware should contact our sales team. Sales agents are standing by to help you discover what contactless payment options are right for your business’s use case.
We invite you to take advantage of our no-risk, no upfront fee, and no cancelation fee guarantee. Get started today and receive our low merchant processing fees starting from 0.2% + 10 cents per transaction.
Whether you need to establish a new merchant account or upgrade credit card processing equipment to touchless technology, US Processing Payments is standing by to help. The trained experts at US Processing Payments know the best contactless payment solutions for businesses, both large and small.
Contact us by phone from 9 a.m. to 4 p.m. Central Time at 1-888-788-2201, Monday throughout Friday.