Tapping to pay with a contactless-enabled card, phone (Android or iPhone), or wearable is becoming more and more popular.
Giving consumers the option to complete a contactless – or tap and pay – purchase means your business can complete transactions faster than with traditional payment methods. Creating a quick and easy checkout experience is beneficial for businesses looking to complete customer transactions as fast as possible such as grocery stores, quick-service restaurants, and pharmacies. Any business where customers line-up can benefit from tap payments.
Another industry that has experienced success with tap payments is the transit industry because it enables consumers to pay quickly and easily while they’re on the go. It’s a preferred payment method for these consumers looking to quickly pay their bus or train fare without missing their ride.
According to a recent report from Visa, outside the US, tap and pay accounts for 2 out of their 5 in-person transactions. Visa also reported that in Canada, 50-75% of transactions are completed using tap. Similar usage is reflected in SE Asia, Australia, New Zealand, and parts of Europe. The US is still lagging behind other countries for tap and pay transactions, primarily because most user cards come equipped with EMV capability, but not NFC (near field communication), the technology required for tap and pay to work. However, with more financial institutions in the US beginning to issue contactless cards to consumers, it is predicted that the US will quickly catch up to other countries for tap and pay purchases.
Visa is predicting that contactless payments will become a primary payment method worldwide over the next three to five years. Tap and pay is a secure way to make a purchase because the cards use the same EMV security that has demonstrated its ability to reduce counterfeit fraud.
Check out our article 3 Reasons Why Tap and Pay (NFC) is Awesome to see how accepting contactless payments can benefit your business.