COVID-19 has boosted the adoption of contactless payments. Here’s what small business owners need to know.
Americans are adjusting many familiar behaviors to better protect themselves and others from exposure to COVID-19. As many shoppers make a conscious effort to minimize physical contact, adoption of contactless pay, mobile pay, and other secure online payment methods have rapidly increased since the pandemic began.
In fact, in a 2020 study by Forrester Consumer Technographics, 69% of retailers reported that no-touch payments had increased since January — and nearly 20% said more than half of their payments are now contactless. Further, this preference for contactless payment might be here to stay: 57% of survey respondents who used a contactless method for the first time in May said they would likely continue using those methods once the pandemic ends.
What is a Contactless Payment?
There are several options for contactless payments, from tap-to-pay cards to digital payment apps like Apple Pay ® and Google Pay ®. Most contactless payment methods generally allow customers to pay in person by hovering a smartphone or tap-to-pay card a short distance away from an equipped point-of-sale system’s terminal.
Using a Point-of-Sale System for Contactless Pay
Implementing a point-of-sale system that accepts contactless payments supports the push for increased health and safety while also accommodating evolving consumer preferences.
At minimum, a robust payment system plays a key role in giving your customers the payment options they want. But with today’s technology, a point-of-sale system can do more for your business. Fully developed point-of-sale systems may also offer helpful functions for your specific industry — such as inventory tracking or schedule management. Some systems may even let you add gift or reward cards unique to your business as another payment option. Most importantly, many providers will enable you to scale your system as you grow.
Ultimately, as consumer preference begins to shift from swipe or chip-and-PIN methods to contactless pay, many small business owners may benefit by staying ahead of the curve — particularly during a time when health and safety are at the forefront of many consumers’ minds. A robust POS system can help small business owners improve their ability to meet new customer expectations and use additional tools designed to help manage their business.
Explore cash management for small business owners, or learn more about the latest payment technology from Regions Merchant Services.
