Nearly 90% of customers now use contactless card payments when shopping in-store, according to research by Lloyds Bank.
As a percentage of face-to-face transactions, Lloyds’ research found that contactless debit card payments have grown 22% since June 2019, from 65% to 87%.
Businesses of all kinds have seen an upturn in customers choosing to use contactless payments in-store.
Restaurants (93%), health and beauty (90%), department stores (89%) and supermarkets (86%) have seen the most significant rise in the use of contactless payments.
But while the covid pandemic pushed many customers towards contactless for the first time, the fact more customers than ever continue to choose contactless over cash and chip and PIN shows this isn’t just a phenomenon during a crisis.
Contactless payments are here to stay as the favoured payment method by customers.
In this article, contactless card machine provider Handepay outlines why customers (and businesses) have continued to favour contactless.
Customers value convenience
In the background of the contactless payment revolution, cash has been having several problems. With banks closing high street branches and the number of free ATMs declining, cash has become more difficult – and expensive – to get hold of.
Cash is also inconvenient to use.
It’s one more thing to carry around. Plus, paying using cash can take a while, especially when dealing with coins and not just notes.
Compare that to a contactless card payment, where the transaction is completed in seconds, and it’s clear why customers view contactless payments as more convenient.
Customers value choice
Customers like to do business on their terms and limiting or controlling how they do business with you alienates them.
Contactless card machines don’t just open you up to card payments but also allow newer payment methods, such as those using digital wallets like Apple Pay, Samsung Pay or Google Pay.
With customers already moving towards these new payment methods, providing them with choices and options is essential.
The contactless limit makes cards more convenient
It’s not always been the case that card payments have been more convenient, especially considering the early days when businesses would impose minimum spending on cards.
These minimum spends are mostly a thing of the past.
And with the contactless payment limit now being £100, these payments are more accessible for customers looking to make higher-value purchases using their card.
Customers are already embracing new payment methods
While customers have embraced contactless card payments in great numbers in the last few years, many have already moved on from contactless cards to even more convenient mobile wallets.
These are apps on their smart devices that can store payment information and be used to make purchases without the need to present their card.
And over half of 18-34 year olds are registered for mobile payments, along with one in 10 shoppers aged 65 and over.
Digital wallets work precisely the same way as contactless card payments, but customers don’t have to carry as many things with them (and let’s be honest, people would much rather leave their wallet at home than their phone).
Protecting business viability with contactless card machines
Whether you trade from a store, on the go with a mobile card machine or do business online, having a contactless card machine or the ability to take online payments is critical.
The last few years may have pushed customers towards contactless payments, but now they’ve experienced the benefits first-hand, very few customers are ever going back to cash (or even chip and PIN payments)
Investing in a contactless card machine should be an essential job if you want to protect your business and prepare it for the future.
