Help your merchants meet consumer expectations and enhance payment experiences.
Convenience continues to drive customer decisions of every kind –– not only in what they buy –– but in how they buy it. Decades ago, the innovation of the debit card seemed to change everything. It was a newfound, quick, and easy way to make purchases without having to hold up a line when writing out a check or fumbling for cash. Now, contactless payment adoption has started to cross generations, and ISO merchant Agents need to make sure their clients are prepared to run these types of transactions.
A trend that will continue.
The pandemic was a significant driver of contactless payments, both with cards and mobile wallets. Merchants had to adjust how they served customers with minimal touch and adequate social distancing. However, the use of smartphone apps and mobile wallets has become more common. People have come to expect a convenient –– and contactless –– transaction experience. In fact, Payments Journal found that 86 percent of consumers plan to make contactless payments more often, even with the pandemic behind them.
ISO merchant Agents who aren’t selling contactless transaction methods are missing out on valuable opportunities. Depending on your clients’ business needs, you can implement one or a combination of near-field communication (NFC) contactless payments, QR codes, ACH, or other touchless payment methods. You’ll help your merchants meet their customers’ expectations while showing them that you are making their success your priority.
The benefits of contactless payments.
If your clients need some convincing before deciding to implement contactless or touchless payments, share these facts and statistics. Contactless payments:
- Attract younger consumers: The 18- to 34-year-old demographic is poised to dominate commerce. The 80 million-strong millennial consumer demographic and upcoming Gen Z are vital to many businesses. Offering contactless solutions –– particularly NFC card readers that accept mobile wallet payments –– means you are following the trends and catering to the younger generations who have grown up in a digital world. Potential customers in that age group will tend to become repeat customers when they know they can use technology to enhance their shopping experiences.
- Speed up transactions: Customers want to make transactions as quickly and conveniently as they can. For example, some retail locations offer card-only self-checkout stations when front-end help is limited or lines are long during peak hours. Contactless payments shave time from each transaction.
- Meet expectations: When customers are ready to check out, and cards or mobile wallets are not accepted, it can be a source of frustration. Not accepting these types of payments also risks lost sales because customers who aren’t prepared to pay another way could abandon their purchases.
- Yield more revenue for merchants: The ease of contactless payments tends to translate into a higher number of consumer transactions. Furthermore, when customers aren’t limited by how much cash they have in their wallets, they tend to spend more.
- Make transactions more secure: Although your merchants may find it counterintuitive, contactless payments with a chip card or a mobile wallet are more secure than many other payment methods. They use the same payments infrastructure as EMV payments and, in the case of mobile wallets, have added security from mobile native features like certified, point-to-point encryption, and tokenization.
- Are more hygienic: Due to COVID-19, ISO merchant Agents were forced to provide solutions for safe transactions during the pandemic, contactless payments made sense. When cashiers and customers don’t have to pass cash back and forth, it eliminates touch and worry of infection. It’s a trend that won’t go away anytime soon.
- Facilitate loyalty programs: These days, the ability to reward loyal customers with special deals is a must. Many mobile wallets allow consumers to store their loyalty card numbers in the app, making it easy to pay and redeem rewards. This added convenience can significantly enhance customer experiences and increase loyalty.
Stand out from other ISO merchant Agents by keeping your clients on-trend.
According to Mastercard, eight in 10 consumers use contactless payments. ISO merchant Agents must ensure their clients are positioned to meet their customers’ expectations and capture their sales.
Are you an ISO merchant Agent who needs more information on contactless payments and how selling them can help grow your business? Contact North American Bancard.
