Advantages and Disadvantages of 'Contactless Payment'

Contactless Payment has made payment simple and easy for the customers. This allows customers to pay for the goods and services purchased at the POS terminal. Today you can make the payment just by waving the card. No need to swipe your plastic card and input the pin to allow the transaction and get the receipt of the payment. Contactless payment is now becoming more popular because of its simple and fast processing. In this article, we highlight the advantages and disadvantages of “Contactless Payment”:

Advantages for customers:

·         It is a convenient way of making payment. So, you can pay by card or phone directly, no need to move around with cash and cards. And no hassles of the PIN to approve the transaction

·         A secure mode of payment done between two devices. No fraudulent transactions, no worries for customers. In the contactless payment system, your card doesn’t come in contact with any device

·         It reduces the threat of hackers stealing sensitive and valuable information

·         The contactless payment systems are available on different mediums such as smartphones, key fobs, vehicles, or any other mobile system

·         It proves to be a cost and time-efficient way for the average customer. This method is much easier than other payment methods. With the use of a contactless payment card, customers can do the transaction without taking it out of the wallet. Thus saving much time of your customer

·         No more typo errors in entering your PIN, as this payment system is accurate, secure and swift

·         Your customers can also keep track of loyalty points, rewards during purchases and encash them as per convenience

Disadvantages for customers

·         Only a few merchants use this contactless payment system

·         Not all your customers are educated on using this technology and create frustration among users

·         With the e-payment apps on the mobile phone, customers can use this technology

·         It can be a risk of malware or spyware attack on the device on the e-payment apps to steal your valuable and sensitive information

·         The worst thing is that you can’t change the limit per transaction that is already chosen by your bank

Advantages for businesses

·         Contactless payment system- Speed is the biggest advantage. It reduces waiting time, customers don’t have to search for cards in their wallet. Ultimately, as a business owner, you have offered complete customer satisfaction. Moreover, you have a simplified cash management

·         This method, merchants, business owners are able to accept more payments during peak times and reduce the delays

·         No charge any commission on transactions! So, companies or business owners don’t have to pay any additional fees if their customers use the app. (Only the standard card processing fees is charged if you are using Android app)

·         As a business owner, you can optimize loyalty programs and improve customer relationships. With the help of customer data, you can push alerts, notification or digital copies of loyalty, reward, membership/ gift cards, special offers to your customer’s mobile phone

Disadvantages for businesses

·         Some business may have trouble paying if they are unaware of the process, or they don't have featured mobile

·         The older generation may have difficulty using e-payment apps from the mobile phone. Due to lack of knowledge and process, they might feel unprotected by this method

To conclude, contactless payment methods are now a reality and more as a customer we get acquainted with this will make our payment process easy and fast. We at Peddletech offer a range of Retail POS systems and POS terminals and equipment like barcode scanner, barcode printers and more on. Give us a call on +91-8806951951 or let us know your requirement at response@peddletech.com. Our experts will get in touch with you for the Posiflex POS System requirement.