The crisis has supported the positive benefits of contactless payments due to it being considered a cleaner way to pay, and can be 5-10 times faster than alternative in-person payment methods, having a huge increase in use in newer markets. We believe this trend is here to stay.
Public transport has also advanced with pay-as-you-go and tap-and-ride systems, using just a contactless credit card or digital wallet, with countries like the United Kingdom, Singapore, Russia, and Brazil leading the way. While the contactless transit act was very much in play before the crisis, we are now seeing an increase in adoption and a larger push to go ‘friction free’ in public spaces. There is no denying that cashless payments account for a considerable and growing amount of revenue generated for the cities, operators, passengers, and the broader community.
What are the benefits of cashless payments?
Cut down on time spent handling cash
The collection and counting of physical cash actually takes up more time for employees, in fact transit experts spend 3.5 hours more on the physical collection of cash, versus digital tickets (14.5 cents a physical dollar versus 4.2 cents a digital dollar).
Reduce cost of ‘in-person’ ticket sales
Cities are obligated to come up with smarter ways to reduce the overhead costs around ticketing, contactless machines require little to no manpower opposed to cash payments which still require some in-person interference, even if to collect the cash from the machines each day.
Sped up transaction times
There’s no denying one of the major attractions of going cashless is the speed increase in making and taking payments. From a business perspective, this means shorter queue times, and a more seamless transaction experience. With SoftPOS the employee can move freely around the store or restaurant providing more ease and flexibility in taking payments.
Happier customers
Lets face it, we’ve all become accustomed to a more speedy process making a payment as customers. The experience of paying for your meal in a restaurant with cash can be a lot more timely, (giving the waiter your money, and waiting for the change to be returned) opposed to a friction free payment on the spot payment with e-receipt. Businesses that accept contactless are showing that they value staying current and present with payment automation. Studies actually prove that businesses who accept contactless payment systems experience heightened loyalty and repeat custom.
Fraid avoidance
In addition to being a fast and easy way to pay, contactless cards and mobile devices provide strong protection against fraud without ever touching the payment terminal. In fact, Every contactless transaction includes a one-time use cryptographic code that prevents counterfeit fraud.
Charlotte Hogg, Chief Executive Officer, Europe at Visa has previously stated “The demand for touch-free payments indicates that contactless has become the norm for European consumers and retailers. They are also among the lowest fraud rates of any payment type”
Most importantly, contactless payments are PCI flexible. So, businesses will be assured that they will avoid possible chargebacks and continue to keep a positive position with their customers.