By the end of this year, 6 out of 10 in-store transactions in the U.S. are expected to be contactless payments. Customers have a number of options to complete transactions, including tap-to-pay and mobile wallets. If you haven’t made contactless payments the norm in your small business yet, you may want to consider switching over. Here are three good reasons why.
There are those who still believe that it’s easy to hack a contactless payment. Nothing could be further from the truth. In fact, it’s easier for a thief to steal a customer’s physical card than to hack into a contactless payment.
One reason is EMV chips. EMV chips are embedded in the majority of credit cards in the U.S. and represent built-in security that makes it far more difficult to copy and store card information. To put that into perspective, between 2015 and 2018, chipped cards reduced counterfeit payment fraud by 76%.
2. The cost of a POS system does not have to break the bank
As a business owner, you may already have an existing POS system equipped to accept contactless payments, even if you’ve never used the feature. If you don’t have a POS system, the upfront costs may feel daunting, but it’s a one-time investment in your business (and a business expense). If you shop around, you should be able to purchase the POS hardware you need for under $1,000.
There are several ways to pay for POS hardware and processing fees. They include:
- Upfront purchase: Older, more established POS providers often allow you to pay for the hardware, software, and installation you need upfront. If you choose this route, your initial costs will be higher, but you’ll pay lower monthly expenses. Whether you have a brick-and-mortar business or an online store, having lower monthly expenses can make it easier to stay within your operating budget.
- Subscription: With a subscription pricing model, you pay a monthly fee for the features you want in a POS system and a specific level of customer support. Start-up costs are low, but monthly bills can be high, especially if you have a complex business operation.
- Pay-per-use: As the name suggests, with pay-per-use, you only pay when a transaction is made. For example, Square charges between 2.5% and 3.5% of each transaction. So if a customer makes a $100 purchase, you’ll pay Square between $2.50 and $3.50. If your business doesn’t make many sales, this may be an option for you.
The point is that shopping around can help you determine the most cost-effective way to introduce contactless payment to your business through a POS system.
Consumers like to be in control of how they pay for purchases. The more payment options you offer, the better the chance that your customers will find the payment type they prefer. Whether a person wants to tap, dip, swipe, or pay cash, they’re more likely to revisit your business if they can pay in a way that’s convenient for them.
Given all the plates you keep spinning as a small business owner, the idea of introducing a new payment method may feel a little overwhelming. Fortunately, POS providers have sold so many systems since contactless payment was introduced in 2014 that they’ve learned to walk business owners through the process, step by step. In other words, you’re not alone.
If your dream is to grow your business, adding a contactless payment option may be one small step, but it’s an important one.
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