Issue link: https://www.massageandbodyworkdigital.com/i/1256819
Are Contactless Payments Right for My Business? Consumer behavior is rapidly changing as a result of COVID-19, and clients are increasingly likely to ask if you accept contactless payments. During the first quarter of 2020, Mastercard reported a 40 percent jump in contactless payments—including tap-to-pay and mobile pay—as COVID-19 worsened. 2 Accepting contactless payments may seem awkward at first, but soon they will become part of your routine—and will help increase your bottom line. According to Statista, the average mobile spending per consumer exceed $3,647 in 2020 and that number is expected to almost double by 2023. 3 To encourage spending in your physical location, accommodate tech-savvy clients by offering contactless payment options they can use from their smartphones or other mobile devices. For additional online sales, add a "pay with" button to your online store. That way, clients can complete transactions on their mobile devices there as well. Many clients use mobile apps like Venmo, Zelle, PayPal, etc., to send money to family and friends. You can send payment requests directly to your clients using those apps too. What to Consider When Choosing Contactless Options When deciding on contactless payment options, consider the features most important to you for your business. Also, find a contactless app or system you are comfortable with. This will make your transition to no-touch transactions less stressful. To get started, consider all the available POS system (software and hardware) options. There are many out there, so you will be able to mix and match options to suit the needs of your business. Software There are many types of POS software— and levels of pricing—to consider when choosing which contactless payment system works best for your business. You'll want to consider up-front charges, pre-purchase configuration costs (for your specific business), and monthly user fees. These expenses will vary significantly depending on your needs. Mobile POS software. One of the most common kinds of POS software is mobile software, which is optimized for display on cell phones and tablets. Although most apps are easy to use, many lack features like human resource and accounting applications to help run your business. Mobile POS software is generally best suited for small businesses, though, and should cost less than using terminal POS software. Terminal POS software. This software is designed for larger businesses that conduct transactions across multiple POS systems or in several locations. This software also has more bells and whistles than mobile POS software, such as human resource features, inventory tracking, and accounting abilities. You'll find the terminal POS system to be useful for much more than contactless payments. Hardware POS software needs hardware, and your hardware needs will vary just as much as your software requirements. Smartphones and tablets. It is common for smaller businesses to run their POS systems on a tablet or smartphone. These card-reading devices are easy to attach to your device, come in a variety of price points, and have features that make them ideal for small business owners. POS terminals. POS terminals can simplify the purchasing process for your business transactions and can fluctuate in price and sophistication. Since they can be a bit pricier than using your smartphone or tablet, they are suited to larger, more established businesses with multiple locations. Printers. Though POS systems allow you to email digital receipts, some of your clients will still prefer having a physical receipt. Budget One of the most important things to consider when searching for a contactless payment POS setup is your budget. Besides the POS system price tag and set- 70 m a s s a g e & b o d y w o r k j u l y / a u g u s t 2 0 2 0 Smart Card and Mobile Wallet Technology The technology behind contactless payments uses radio frequency identification (RFID) or near-field technology (NFC) to secure a connection between the chip inside a smart card, wearable, or mobile wallet and the POS terminal. When your client makes a contactless purchase, the credit/debit card company requires them to hold their card (or other mobile device) close to a card reader to process the transaction using a one- time token (a unique security code) to help protect against fraud.