The Rise of Contactless Payments: How Businesses Can Prepare for the Shift

Contactless payments have been gaining popularity in recent years, and the COVID-19 pandemic has accelerated this trend even further. With many consumers looking for ways to minimize physical contact and reduce the spread of germs, contactless payments offer a convenient and safe alternative to traditional payment methods. In this blog post, we’ll discuss the growing popularity of contactless payments and how businesses can prepare for this shift.

What are contactless payments?

Contactless payments are a type of payment method that allows customers to make transactions without physically touching the payment terminal. Instead, the payment is made using a card or device that can be tapped or waved near the terminal. This type of payment is often referred to as “tap and go” or “wave and pay” and is supported by various payment methods, including credit cards, debit cards, mobile wallets, and wearables. The popularity of contactless payments has been steadily growing in recent years, with more and more businesses adopting this payment method. In fact, according to a recent study, contactless payments are projected to grow at a compound annual growth rate of 22.2% between 2023 and 2026, driven by factors such as increased adoption of mobile payments, growth of contactless cards, and the rising demand for fast and secure payment methods.

The impact of COVID-19 on contactless payments

The COVID-19 pandemic has had a significant impact on the adoption of contactless payments. As the virus spread, many consumers became more cautious about touching surfaces and handling cash, leading to an increase in demand for contactless payment methods. In fact, a recent study found that 63% of consumers are now using contactless payments more frequently than before the pandemic. 

Preparing your business for the shift

As contactless payments continue to grow in popularity, it’s important for businesses to be prepared for this shift. Here are a few tips for preparing your business for the rise of contactless payments: 

  1. Upgrade your payment terminals: Ensure that your payment terminals are equipped to handle contactless payments. This may require upgrading your hardware or software to support the necessary technology. 
  2. Promote contactless payments: Encourage your customers to use contactless payments by displaying signage or offering incentives for using this payment method. 
  3. Train your staff: Train your staff on how to accept contactless payments and answer any questions that customers may have about this payment method. 
  4. Keep up with security standards: Contactless payments are secure, but it’s important to keep up with security standards to protect against fraud or data breaches. 
  5. Offer multiple payment options: While contactless payments are growing in popularity, it’s still important to offer multiple payment options to accommodate all customers. 

In conclusion, the rise of contactless payments is a trend that is here to stay. As businesses continue to adapt to the changing landscape, it’s important to be prepared for this shift and offer the payment options that customers demand. By upgrading your payment terminals, promoting contactless payments, training your staff, keeping up with security standards, and offering multiple payment options, you can ensure that your business is ready for the future of payments.