22 October 2020, Why Vianet
The impact the global pandemic had on our lives is one of the reasons why cash is in decline while contactless payment has a continuous growth in popularity. A survey done by VISA Consulting Analytics in partnership with The Strawhecker Group shows that 26% of their respondents expect a decrease in the use of cash post-pandemic. Our own data shows that since the beginning of the year, contactless payment has seen an up to 18% increase in comparison to cash sales on active machines.
But even before the events from 2020, specialists were anticipating that card and contactless payment will take over cash in the future. People’s needs change, their lifestyles change, and society must adapt to that. Nowadays nine out of the top ten card issuers offer contactless cards, and during this year’s first half VISA added 80 million contactless cards.
Contactless payment has several benefits, both for consumers and businesses, that made it become not just a commodity, but an integral part of our lives. It presents certain advantages both for businesses and consumers. Thus, we put together a list including the most relevant benefits to show you why it became essential in our current society:
For every transaction, the money goes straight to your bank account through a secure system which will eliminate the risk of miscalculation, cash loss or stealing. Because it uses encrypted data, contactless payment is considered to be the safest way to pay, highly minimising the risk of frauds.
Without having cash to count, your business avoids extra expenses and your employees don’t have to do the manual work of reconciling cash amounts. This saves your company money and your employees valuable time.
Card transactions and contactless transactions increased in popularity considerably in the last years, and after the recent events, contactless cards became even more frequently used. A researched done by MasterCard showed that 74% of participants will continue to use contactless payment post pandemic. The previously mentioned survey performed by VISA concluded that 41% of respondents have a contactless card of which 60% use it for at least half of their transactions. Giving your customers the option to pay contactless by having a device implemented will give them another reason to prefer your business over others.
This is a benefit for both businesses and consumers. From a company’s point of view, faster transactions mean more clients. Nowadays, people are always on the move, and don’t have time to wait in long queues if they can make do without the product. Long lines are a cause of customer loss. Card payments save the customers from counting their money and waiting for change, thus, transactions are taking less time and those interminable queues become a thing of the past. Plus, contactless payment takes on average 15 seconds less than other card transactions which increases even more the number of transactions that can be done during a day.
A stolen card can be easily cancelled and with the possibility to track your transactions, you’re bank may offer added protection of having the fraudulent transaction refunded.
Due to the latest innovations in contactless technology, consumers can now pay just by using their smartphones or even smartwatches through mobile pay apps. 34% of the consumers surveyed by VISA answered that they will use mobile/digital wallet more often in the future. Not only does this make the transactions faster, but it also increases your accounts security because, in order to use either of these devices to pay, a form of identification is required.
Being able to see all the payments you have made over a certain time period allows you to analyse your buying habits and take according actions. Lately, most apps give you a complete report of your transactions which helps you draw more accurate conclusions.
According to a MasterCard survey, 82% of respondents worldwide consider contactless as the cleaner way to pay. VISA came with a similar result with 60% of participants being more confident in contactless payment to be safer in terms of the spread of COVID-19. This payment method protects both the consumers and the employees from potentially infected surfaces, therefore diminishing the risk of contracting any viruses. This year has shown us how important it is to take into consideration any surface contact such as payment methods in order to protect our health.
Probably the most stressful aspect of travelling to a foreign country on your holiday is the money exchange. Wasting time at the bank in order to change currency, only to realise a few days later, while doing sightseeing, that you ran out of cash and instead of enjoying the scenery, you have to search for a convenient currency exchange location. With card payment, it adds even more convenience to modern day travelling as you can make payments in any currency, at any time, anywhere.
With cash declining and card and contactless payments rising, make sure to take advantage of all the benefits we have presented to you by implementing Vianet’s contactless payment device to fulfil your customers’ needs and bring a new asset to your business.