The Rise of Contactless Payments: Faster, Safer, and More Convenient Than Ever Before

Contactless worldwide has catapulted into a new stratosphere as people look for safer and more convenient payment experiences amid the Covid-19 pandemic.

The crisis has supported the positive benefits of contactless payments because it is considered a cleaner way to pay. It can be 5-10 times faster than alternative in-person payment methods, having a massive increase in use in newer markets. This trend is here to stay.

Public transport has also advanced with pay-as-you-go and tap-and-ride systems, using just a contactless credit card or digital wallet, with countries like the United Kingdom, Singapore, Russia, and Brazil leading the way. While the contactless transit act was very much in play before the crisis, we are now seeing an increase in adoption and a more significant push to go ‘friction free’ in public spaces. There is no denying that cashless payments account for a considerable and growing revenue generated for the cities, operators, passengers, and the broader community.

What are the benefits of cashless payments?

Cut down on time spent handling cash.

The collection and counting of physical cash take up more time for employees. Transit experts spend 3.5 hours more on the physical supply of money versus digital tickets (14.5 cents a physical dollar versus 4.2 cents a digital dollar).

Reduce the cost of ‘in-person’ ticket sales.

Cities are obligated to develop more innovative ways to reduce the overhead costs around ticketing; contactless machines require little to no human resources as opposed to cash payments which still need some in-person interference, even if to collect the cash from the devices each day.

Sped-up transaction times

One of the major attractions of going cashless is the speed increase in making and taking payments. From a business perspective, this means shorter queue times and a more seamless transaction experience. With SoftPOS, the employee can move freely around the store or restaurant, providing more ease and flexibility in taking payments.

Happier customers

Let's face it, we’ve all become accustomed to a more speedy process of making a payment as customers. The experience of paying for your meal in a restaurant with cash can be a lot more timely (giving the waiter your money and waiting for the change to be returned) than a friction-free payment on the spot with an e-receipt.

Businesses that accept contactless are showing that they value staying current and present with payment automation. Studies prove that companies that accept contactless payment systems experience heightened loyalty and repeat customers.

Fraid avoidance

In addition to being a fast and easy way to pay, contactless cards and mobile devices provide strong protection against fraud without ever touching the payment terminal. Every contactless transaction includes a one-time use cryptographic code that prevents counterfeit fraud. Charlotte Hogg, Chief Executive Officer of Europe at Visa, stated, “The demand for touch-free payments indicates contactless has become the norm for European consumers and retailers. They are among the lowest fraud rates of any payment type” Most importantly, contactless payments are PCI flexible. So, businesses will be assured that they will avoid possible chargebacks and continue to keep a favourable position with their customers.