The concept of tap & go payments has been around for a while since the mid-90s. Also referred to as contactless payments, the concept is pretty simple and works using radio-frequency identification (RFID) or near field communication (NFC). It makes the job of the customers easy by allowing them to simply wave or tap their contactless payment system over a POS device for making payment at the merchant/retail outlets. Credit & debit cards, smart cards, mobile wallets, key fobs, fitness trackers, smartphones and other mobile devices can be used as contactless payment systems.
Customers need not have to swipe their cards or even enter a PIN while making payments. This makes it an ideal choice for improving transaction speed in fast-paced environments. An antenna and the embedded chip makes it possible to tap or wave the contactless payment system over the reader at the POS terminal.
Pros of Tap & Go Payments
Improved Customer Satisfaction
Contactless payments help businesses focus on customer satisfaction. Touch and go payments help to decrease the waiting times thereby leading to improved customer experience. It is an ideal payment solution for businesses such as retail outlets and restaurants having higher waiting times.
Enhanced Loyalty Programs
Businesses can reward their customers for making payments using contactless payment systems. Touch and go payments act as a powerful loyalty program and also offer convenience.
Easy & Convenient
Contactless payments are an easy and convenient way of making payments and help to enhance the buying experience of users. They are faster than the card as well as cash transactions. There is no need to wait for the customers to dig deeper into their wallets for cards and provide their PIN. Also, not waste time in rendering exact change to the customers.
Cons of Tap & Go Payments
Dealing with customer concerns related to security and fraud is the biggest challenge for businesses. Mostly the resistance would be from older generations who are less likely to embrace new technologies. It is best to educate the staff and the customers about how the touch and go payments work and how the data is used.