With the arrival of COVID-19, quarantine, and the new normal, the way we used to do business has started to change forever.
And although we were all used to swiping our credit cards, now it’s more important than ever to be aware of where we put our hands and what we touch.
While many businesses are eager to go back to business, consumers have health concerns. They will not want to give you cash, because they will have to receive change. Swiping their cards through a reader that many people have used before doesn’t seem very sanitary either.
One of the most useful tools to build trust in these times is to implement contactless payment.
In this article:
- What is a contactless payment?
- Why is it important to your business?
- What are the types of contactless payments?
- What is best for my business?
- How do I start?
- What are the advantages and opportunities of this type of payment?
Do you know what a contactless payment is?
Contactless payments are those transactions that do not require physical contact between the business and its customers. Unlike traditional payment methods, while doing a contactless payment, nobody touches, it is not even necessary to touch a keyboard or a screen (much less give or receive cash).
Why are contactless payments important for my business?
With good reason, many people are scared to get Coronavirus. This makes them not want to go out or even buy from small businesses. That’s why it’s important to encourage them to start buying again.
To help customer confidence go back up, businesses must make changes that adapt to the new sanitary measures.
One of the most important measures you can take is to minimize contact between people. That’s where contactless payments come into play. A contactless payment will help strengthen the trust of your customers, and encourage consumption.
The different types of contactless payments
There are two main types of contactless payments. Different options adjust to different forms of business. Know them to know which is the best option for you.
NFC stands for Near Field Communication This technology is the most popular way of making contactless payments. It allows customers to “tap” their cards on a device to make the transaction. There is no need to swipe the card.
This technology also allows customers to pay with their smartphones using digital wallet apps such as Google Pay, Apple Pay, Samsung Pay, etc.
To find out if a card or terminal is compatible with NFC technology is easy. You only need to check if it has the NFC logo.
Which type of contactless payment is the best fit for my business?
You must understand and know your client to select a type of Contactless Payment for your business.
If your average customer is not an intensive user of social media and/or they’re over 45, then your best bet might be to implement an NFC reader.
On the other hand, if your client is an expert user of smartphones or they are acquainted with online shopping, it may be a good idea to implement digital payment.
On the other hand, if your business is frequented by clients of different ages and profiles, then the most sensible thing would be to adopt both contactless payment options: NFC and digital payments.
How to implement contactless payments
There are many options to implement digital payments in your business:
1. NFC Terminal
It is very easy to start accepting payments using NFC technology, you just need a compatible terminal. There are many options and several companies that offer this service to all types of businesses.
The price for a contactless payment terminal terminals starts at $39. The most common terminals are the ones that Square and PayPal offer, but many other regular card processing terminals can already have this type of payment.
If your terminal is less than a year old, it is very likely it has NFC technology. Just look for the NFC logo on your terminal and start accepting contactless payments.
2. Online checkout
The easiest way to start receiving digital payments is to create an online checkout. Online checkouts allow you to upload your products or services to a transactional page without the need of creating a web page. There are many online checkout options but the most popular are: Square, Stripe, PayPal, etc.
Another option is to create your own website. This option can be very useful for established businesses that want to (partially or completely) migrate to a digital ecosystem. There are many options to create a website and make it transactional, the most popular options are: Shopify, Wix, Squarespace, prices start from $19 a month.
4. Finding a business partner
For many businesses, uploading their products to platforms such as Postmates may be the best answer. This platforms allows businesses to upload their products, charge customers, and deliver at home without the business having to make changes to their organization. This option can be very useful for small businesses that don’t have the capital to implement other alternatives.
Many times, making a change in our operation may require an investment. At Camino Financial we don’t want any business to be left behind, that is why we help small business owners with loans that can help them grow their businesses.
Pros and Cons of Contactless Payments
The advantages of implementing contactless payments in your business are:
- Increased customer confidence
- Shorter queues/faster buying process
- Decreased physical contact (which means that no one is going to get sick in your business)
- It’s safer for customers and business
However, there are still obstacles that you’ll have to face when implementing this type of payment:
- You will have to teach some customers to use the system
- Depending on the method you choose, will have to pay fees for payment processing (this could make your prices be slightly more expensive)
- Not all cards have NFC technology (so not all your customers will be able to make contactless payments)
- Not all customers are used to making digital payments and may feel reluctant to adopt this technology
Contactless Payments are here to stay
It’s vital that business owners adopt new technologies so that their businesses continue to evolve and grow. The pandemic and the quarantine period will definitely lead to changes in the way we do business; the new economy will demand that we adapt to the needs of our clients.
Although it may seem somewhat complex, it is important to implement these new technologies in our business so that you don’t fall behind. Make sure you provide the best service to your clients!
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