From food and retail to parking, every industry has had to offer contactless transactions this year. Customers demanded it. And a nationwide coin shortage made it even more necessary. But is it a trend that will outlast the COVID-19 pandemic? Spoiler alert: contactless transactions are here to stay.
What are contactless transactions?
Any payment between a merchant and a patron that doesn’t require swiping a card or exchanging cash is a contactless transaction. Some common examples include credit or debit cards with radio-frequency identification (RFID) chips and mobile devices with near field communication (NFC) like Apple Pay or Google Pay. Now, an even easier way to offer contactless transactions is with scannable QR codes that take customers to an online payment portal.
What are the benefits?
Customers prefer it
According to a survey done by Mastercard earlier this year, 79% of respondents worldwide said they are now using contactless payments, citing safety and cleanliness as key drivers.
It’s quickly growing
Mastercard data revealed over 40% growth in contactless transactions globally in the first quarter of 2020. Further, 80% of contactless transactions were under $25, a range that is typically dominated by cash.
Transactions are faster
Compared to payments made with cash or swiping a card, contactless transactions are up to 10 times faster. This is because there’s no waiting for the patron to count cash, enter their pin, or sign a receipt.
It makes social distancing easier
With contactless transactions, you reduce the required interaction between staff and patrons. Plus, you can set up payment stations throughout your business to prevent customers from crowding into lines.
What does it mean for parking?
According to Ben Martel of Inugo, the future of parking will be more digital. He says, “it’s cheaper to deploy and secondly it actually creates a better relationship with the parker because you know who they are.” With many parking lots struggling to reach capacity, operators everywhere are looking for ways to lower costs and streamline operations. By implementing Self Park solutions that facilitate contactless transactions via QR code, operators can lower the cost of staffing lots easily, even without NFC-enabled terminals.
Ultimately, even after the world returns to normal, both businesses and customers will likely still prefer contactless transactions. If it’s faster and easier, why not?
Learn more about how Pavemint can help you set up contactless transactions by contacting us.