Contactless card payments have been touted as the next big opportunity in payment processing. With a contactless card, a consumer simply waves a card at a reader rather than swiping the card. The best applications for contactless payments are high volume, relatively low ticket environments such as fast food restaurants. In these situations, every second saved moves the line along faster and result in more potential sales.
Will consumers embrace the new technology? It’s certainly been slow to catch on. Most consumers still fear that personal data can be captured more easily with a contactless reader rather than a swipe machine. Although the fear may be an overreaction, ID theft is still a big problem in the US with 8 million new cases of comprised identify data every year.
It’s a slow upward battle for bank agents selling contactless payments. The technology seems to make sense but convincing merchants to buy is another story. The extra few seconds saved at point of sale is not a big deal to most merchants. In fact, some prefer to have the buyer spend some time at checkout because it is a good place to sell additional impulse items.
New technology is always fun and exciting. But there must be a compelling business case to capture the attention of most business owners. Contactless payments may be a nice to have item but not a have to have item in the mind of most merchants.
Put contactless card technology in your sales kit. You’ll sell some occasionally. But don’t expect it to add much money to your bottom line.
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