Increases in Contactless Payments

What is considered a contactless payment? A contactless payment is when an individual makes a payment via their smartphone. For example, going to your favorite coffee shop and being in too much of a rush to go through your wallet for your card so you quickly tap your phone on the POS. What helps make this all possible is the NFC (Near Field Communication) technology to make a seamless payment with the merchant’s processing equipment.

Did you know that 80% of Millennials not only own a smartphone, but it’s the first thing they reach for within the first five minutes of waking up! I guess people were right when they said that we spending every waking moment on our phones. Now, wouldn’t it be ideal for your business if the first thing on an individual’s mind that morning was to make a purchase and know that your store accepts contactless payments? As a merchant, there are many factors that go into deciding how you want to process payments from your customers but you do your best to stay ahead of the curve. Below are a few that support the projected increase in mobile payment processing.

In the United States, contactless payment processing is not only expected to grow at a compound annual growth rate of 80% and reach approximately $503 Billion in transactions, it is also projected to be adopted by 56% of consumer population. With the statistics in consideration, many retail stores have turned to contactless payment processing and its benefits. One of the most important being loyalty programs. Mobile loyalty programs not only provide incentives such as contactless gift cards and coupons, they increase customer engagement! If you have a Starbucks app then you have been pleasantly surprised when you qualify for a free drink based on your points.

So, you haven’t accepted Mobile payments before and this hasn’t been an issue why should you now? With the projected increase in mobile payment processing, and with millennials making up almost 25% of the population in the United States, you may want to consider being mobile friendly as a merchant. Newer generations have grown up with this technology and are looking (like everyone else is too) for convenience, and we have all been guilty of leaving our wallets at home. Although contactless payments may not seem like a big change for those that hate to have to dig through their wallet or just made the simple mistake of forgetting it, it makes a big difference.