Forbes Features Arad Levertov Discussing Contactless Payment Options
Finance Experts Share 15 Essential Insights On Offering Contactless Payment Methods
During the pandemic, more consumers have been reporting a preference for using contactless payment methods, and most experts expect that trend to continue. Businesses large and small are restructuring their systems and adding equipment so they can accept contactless payments.
Businesses need to be aware of both the potential upsides and implications of adding and maintaining a contactless payment system. Below, 15 finance experts from Forbes Finance Council share important insights for businesses considering adopting the technology.
1. Consider both the cost- and time-saving benefits.
Contactless payments offer a host of cost-saving opportunities for businesses by reducing operational costs and improving productivity. Merchants spend too much time counting, auditing and depositing cash, and customers spend too much time in line. By offering contactless payments, businesses can reduce overhead costs, redirect time toward their customers and make everyone safer. – Jeffrey Tassey, Electronic Payments Coalition
2. Look for an easy-to-install system.
Businesses need to weigh the convenience (the open platform and interoperability of the contactless payment system offered), friendly user experience and added value for the consumer on one side against the fee structure and difficulty of deployment on the other side. Businesses should favor a solution that’s easy to install—e.g., software for installation on their phone or cash register—as well as a rewards program. – Arcady Lapiro, Agora
3. Reduce sales abandonment rates via its efficiencies.
In addition to improving throughput yield—and therefore gaining cycle time efficiencies—contactless payments reduce sales abandonment rates and drive higher average transaction volumes across all consumer cohorts. – Benvenuto Marcello Mezzapelle, First Tech Federal Credit Union
4. Remember to maintain ‘the human touch.’
Contactless should not mean “without a human touch.” People still want to feel special—like someone really thought about their needs. So the tough question to answer is this: “How do we make contactless service feel premium?” The companies that strike that balance will be the big winners. – Mia Erickson, Whitnell
5. Don’t limit your customers to NFC tech.
Don’t stick to near field communication alone; this technology isn’t compatible with everyone’s phones or debit cards. To accommodate everyone, you should choose a payment terminal that accepts not only NFC but also other digital payment methods such as Square, PayPal and Postmates. This way, customers have a range of options in case NFC isn’t compatible with their devices. – Tyler Gallagher, Regal Assets
6. Look into implementation costs and potential payment delays.
You need to do your homework and look at different options. Many online/contactless payment systems are very expensive, and some take a while to process payments, leaving the business stuck waiting for funds to hit their account. There are a lot of options, and contactless is a necessity for most businesses—just take the time to pick the one that is right for you. – Noah Brocious, Capital Fund I LLC
7. Analyze both short- and long-term costs.
When offering and maintaining a contactless payment system, be mindful of the fees associated with this service. Some contactless service providers will lure you in with smaller upfront expenses but burn you over the long term. Assume this trend becomes the new norm and be sure to analyze both the short- and long-term costs associated with each provider. – Robert Reeder, GlassView
8. Train your team to correctly process and protect customer data.
It’s important for businesses that offer a contactless payment system to protect the personal information of customers. Important steps include training employees to correctly process and use customer data and maintaining a cybersecurity system to prevent data breaches. – Lijie Zhu, Dragon Gate Investment Partners
9. Check compatibility with your existing security systems.
Businesses should ensure that the consideration and subsequent use of such new payment methods follow their internal policies and processes. The key thing for me is that these methods must be able to plug into the company’s existing screening and monitoring systems so that there are no gaps in overall risk coverage. If possible, have a meeting with the payment provider’s compliance officer. – Frans Wiwanto, Flywire
10. Be aware of the increased risk of fraud.
The consumer demand for cashless is changing society and as a result, organizations are expected to offer competitive digital services. Businesses need to know that this has resulted in an uptick in fraud and created an urgency for implementing an effective payment system that can collectively protect consumers and, at the same time, prevent security attacks. – Eric Solis, MovoCash, Inc.
11. Choose with your inventory tracking and data analysis needs in mind.
While many people think that contactless payments require a large kiosk, there are many point-of-sale systems that can help you keep your customers safe. Options vary in price and offer a range of features. When choosing the best fit for your business, make sure to assess your inventory tracking and data analysis needs, as this can offer significant value. – Ryan Rosett, Credibly
12. Adapt to the new digital reality.
Contactless payments stand to replace traditional card payments, and businesses need to adapt to a new digital reality of customer interaction. Customers quickly adapt to the convenience and speed of Apple Pay and Google Pay, and we believe that these methods are the future of payment—similar to the level of market penetration of WeChat Pay and AliPay in China. – Khofiz Shakhidi, Alif Bank
13. Be sure your solutions work for every customer, no matter their credit.
Businesses looking to offer a contactless option for their customers are partnering with providers that are customer-centric and focused on offering shoppers a true choice in payment convenience. When offering these payment options, businesses should choose solutions that work equally for every consumer, no matter where they lie on the credit spectrum. – Arad Levertov, Sunbit, Inc
14. Have a plan in place for customers who don’t use e-payment tech.
Contactless payment methods are easier, faster and more convenient than regular payment methods. They also avoid human contact, so it makes it more hygienic and safe in the context of the virus we are living with. Still, businesses need to know that not everyone will have e-payment apps on their phones—especially the older generation. They must plan for a backup to not lose this demographic. – Gabriela Berrospi, Latino Wall Street
15. Be prepared to address customer complaints (whether deserved or not).
New payment systems bring new types of fraud and theft. A business needs to know how to handle a fraudulent transaction. There is a high risk to your brand if an angry customer complains that they got charged for something they never bought—regardless of whether they kept their information safe or not. Having a comprehensive plan to deal with these situations can minimize fallout and even garner you a good reputation. – Aaron Spool, Eventus Advisory Group, LLC