Accepting contactless payments is no longer optional for retailers and hospitality businesses.
The long awaited Apple Pay is now with us, and other contactless payment options are on their way. With the transaction value threshold now raised to £30, any retailer that isn’t accepting contactless payments is already losing business.
Whilst recent changes to the charges that banks pay to Visa & MasterCard for processing contactless payments mean that merchants no longer have such a financial incentive to promote the new technology, there’s no doubt that this faster, more secure payment method is set to continue to its fast rise towards dominance.
According to the UK Cards Association, there were 46.1 million contactless cards in use in the UK in June 2015 – a rise of over 30% on the 2014 figure.
September 2015 is a huge month for contactless payments as the transaction value limit has increased by 50% (from £20 to £30). With the average card transaction value (For June 2015) being just under £44, it won’t be long before the majority of transactions can be paid for by Contactless.
There’s no doubt about it, paying with a contactless payment card is faster and more convenient than any other payment method. Until recently though, growth in contactless payments has not matched industry expectations. To a large degree, this is the result of a vicious circle created by security concerns.
In the early days of contactless, there was considerable resistance to the technology, both from retailers and from consumers with both groups concerned about unintended purchases and data security.
Inaccurate press coverage of “security breaches” put a strong brake on the rise of contactless card payments.
The reality though, is that contactless payments are probably the most secure option for consumers – and this is a truth that is now gaining momentum thanks to a large degree to Apple Pay.
When a consumer hands their card over to a merchant or inserts it into their terminal they risk data breach through non-PCI DSS-Compliant systems, cloning etc.
On the other hand, with a contactless payment, these risks are avoided entirely. Effectively, the transaction works on a P2PE (point to point encryption) basis – but without the P2PEaudit requirements. In other words it’s the most secure payment method for both the Consumer and the retailer.
As a retailer, ignoring Apple Pay, and other alternative card payment methods, won’t be possible for long.
The good news is that it’s exceptionally simple to set up the facility to accept these payment choices.
Even better news is the cost. If you take a contactless payment of any type, then the processing cost is the same as for a debit card i.e. it’s much lower than credit card payment processing fees.
To see how to set up Apple Pay acceptance visit:
Or get in touch – and we’ll help you not only to set it up but also to get the best merchant account rates and service possible.