Businesses are constantly seeking new ways to make our lives easier. Whether that be innovative appliances that cook food faster, a taxi to our location at the click of a button, or finding a date with a simple swipe of the finger, we are on an endless mission to achieve more while doing less. And, when it comes to the way we do business, contactless payment is one such innovation.
Contactless Payment Growth: Cash is No Longer King in the UK
Over the past decade – cashless cards have gone from a banking fad to everyday essential. In the last 10 years, more than £60 million has been spent via contactless devices, but in the last year, the contactless boom has really taken hold. According to Barclaycard, more than half – 51 percent – of all transactions within stores that cost £30 or less are now paid for via contactless, and it is anticipated that percentage will continue to increase.
When it comes to purchasing food and drink, the contactless payment revolution is even more plain to see. More than nine in 10 eligible transactions in fast food outlets (91 percent) and pubs and bars (89 percent) are now made with a contactless card or device.
A report recently published by Finextra, a research organisation focused on analysing technological developments in the world of finance, found that there has been huge growth in all sectors when it comes to contactless spending. The biggest rise was in clothing stores, which saw a 321 percent increase, and car parks coming in second with a 137 percent increase.
For small businesses in the retail sector, accepting contactless payment is no longer a nice to have; it's essential.
Overcoming Early Adoption Challenges of Contactless Payment
When introduced to the UK market, contactless payment was initially slow with the public uptake. Like any new technology, consumers needed time to acclimate. Consumers were wary of issues such as opportunities to commit fraud or spending more than they expect. One of the key issues is because of the ease of using a contactless card, some people have become complacent. As there is no need to sign for a payment or type in a pin code, too much money could be taken by a retail outlet, either by mistake or on purpose. If the customer does not check their bank account regularly, they may never even become aware of the transaction.
Contactless payment has since taken off in the UK, and customers have learned to trust the process. Contactless cards are extremely safe and secure, and customers are more aware of the multiple layers of security protecting against fraud. Trusted, recognisable contactless payment companies have also helped with the adoption process. They help companies sell securely with several layers of encryption – and ensure both the retailers and customers are protected. These companies make secure payments simple, encrypting payment information and monitoring each transaction. In addition to the layered security, consumers enjoy the payment process as it is easier and less complicated. Consumers want quick shopping experiences, and contactless payments help them achieve that.
For businesses that interact directly with members of the public, being able to accept contactless payments has become incredibly efficient, but more importantly necessary. Contactless payment technology has become now the norm for millions of savvy consumers. Organisations that have yet to modernise their businesses and still rely solely on cash will undoubtedly suffer not only in the long-term, but in the short-term as well.
Customers want seamless interactions and personalised shopping experiences – therefore it is important for retailers to keep on top of technological trends and provide a complete omnichannel experience to customers. Today’s customers expect great service, excellent selection, and competitive pricing. Not only do they not care whether that’s online or at a physical location — but they also expect to be able to “mix it up” a bit. Customers have come to expect that if they order an item online, they can return it in the store, for example.
Adopting a solution that not only provides customers instant access to your products with contactless payments, but that can also manage your entire business is essential for success. Find out how you can run your business stronger and smarter with contactless payments and one integrated solution for omnichannel success.
If you’d like to learn more about contactless payment technology download Vision33’s omnichannel retail solution information kit.