The eCommerce industry is booming and has bounced back after the lull in 2020. Although, now buyers are more inclined to buy from those retail websites which accept digital payments. Since 2010, most retailers realized that the Brick-and-Mortar economy is slowing down and have the potential to die completely.
Consumers around the world now prefer making payments digitally through different options like a digital wallet. Digital payments like gift cards are contactless payments and very seamless which motivates buyers to go through the purchase.
In some countries, digital payments were already in full force. In others, the pandemic almost made the adoption of contactless payments in the retail industry a necessity. The popular forms of touch-free payments are done through contactless cards, QR codes, digital gift cards, mobile payments, digital wallets, and bar codes.
In the retail industry, contactless payments have become more normal than cash payments. Now, consumers are aware of the benefits of contactless payments. Therefore, the shift from cash payment is very unlikely to subside.
Advantages of contactless payments & their impact
The adoption of digital payments certainly has a positive impact on the retail industry. Not only that, but It is also a deciding factor in the future of B&M stores. There are multiple benefits of contactless payment solutions which enhance the customer experience to a great extent. Furthermore, retailers also benefit from adopting contactless payment methods. The major benefits of contactless payments are:
- Minimal to no contact: Even if we are slowly starting to indulge in in-person shopping post-pandemic, having a sanitary shopping experience remains to be of prime importance. Customers desire to have as less contact with cashiers at the POS as possible. Employees of retail businesses also feel safer where contactless payments have been implemented.
- Convenient and fast: Both customers and businesses benefit from contactless payments as the checkout process becomes quite quick. Buyers can complete the payment with a few taps on their smartphones. Retail outlets don’t need much space for their payment counter. The expedition of the payment process also makes it easier to be maintained by fewer cashiers. Contactless payments reduce long queues and crowding.
- No room for human error: Contactless payment solutions are almost fully automatic processes. Therefore, there is almost nil chance of error during the transaction process, especially on the cashier’s end.
Final thoughts
Customers have turned to contactless payments like tap-and-go or touch-and-go because of how flexible, convenient, and secure they are. The retail industry is adopting contactless payments as the future of payments. They increase the efficiency of operations by reducing the transaction time. This has led to increasing in revenue. A seamless checkout enhances customer experience and retains customers. Retail businesses don’t need to pay any added processing cost for setting up contactless payment options. Encryption technology protects transactions from security threats and fraud. It also opens up opportunities for modern-day marketing like customer loyalty programs. Contactless payments are here to stay!
The article was authored by Bahaa Abdul Hussein and has been published by the editorial board of the Fintekdiary. For more information please visit www.fintekdiary.com
