As per a study that Mastercard has conducted, 79% of consumers across the globe make use of contactless payment options. This trend is likely to continue even after the pandemic subsides.
What is contactless payment in the first place? It is what the name suggests. You don’t have to physically be in touch with the vendor as a consumer or vice versa for carrying out a transaction. This is in contrast to the traditional methods of payment where you make use of cash or allow the vendor to swipe your card at any POS. More about the same here.
Contactless payment systems – how will you migrate for your business
Before you know how you might migrate to the contact payment system, let us know the four main types of the same. Also, find out how contactless payment works in these four main payment methods.
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NFC-enabled contactless cards
NFC, also known as near-field communication technology, lets consumers transmit their payment details at a POS or point-of-sale terminal by waving the plastic card near the card reader.
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Mobile wallets
Apple Pay, Samsung Pay, and Google Pay are a few examples of mobile wallets. Few banks will allow consumers to make their payments through their smartphones and transmit the payment details to the POS, and this method uses NFC technology.
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In-app purchases
If you use an app to make purchases like Grubhub and DoorDash, these are examples of contactless payment. There is no physical contact.
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Digital payments
If you are making payments via a website or any digital platform, the nature of payment is contactless. These contactless payment systems replace physical cash flow.
Migrating to contactless payment
If you want to switch over to contactless payment options for your business, these are the steps.
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- You need an NFC-enabled payment terminal.
- You also need to have a payment processing platform capable of accepting payments from many mobile wallets.
Approximately 88% of the point-of-sale terminals can carry out the NFC transactions, and the POS terminals that were shipped by the end of 2017 in the US were equipped with NFC abilities.
Your B2B Company must either order through apps or add a business to a relevant directory to switch over to these methods. Alternatively, create a website of your own so that you can receive online and mobile orders.
In most cases, contactless payments have been associated with in-person retail transactions, but they have helped many B2B business entities. For B2B, business entities must use digital invoicing and payments. Digital invoices that have links will allow users to make payments online by using ACH, a payment card, or with the help of PayPal, an online payment provider.
