Contactless and Card Payments, Redefining Digital Transactions

Jan 12, 2021

According to Global Market Insights, it was discovered that the global smart card market is anticipated to hit $65 billion by 2025. The smart card, also known as the contactless card, is unequivocally the most accepted form of payment. 

The outbreak of the pandemic earlier this year has also driven many customers around the world to adopt contactless methods of payment. With countless millions working from home, more and more innovative technology is being adopted to keep communication and purchases, at a distance. 

Contactless Payments Defined

Most contactless payment systems are based upon RFID or NFC (Near Field Communication) technology. They can come in the form of debit and credit cards, smart cards, smartphones, key fobs, even watches and rings. Payments can be activated through “secure contactless systems” like Apple Pay, Samsung Pay, Fitbit Pay, Google Pay, and any bank mobile application that supports contactless payments. 

A research study carried out by Juniper Research has revealed that more than fifty-percent (53%), of Point of Sale transactions worldwide will soon become contactless in the next 5 years. 

The Benefits Of Contactless Payments

The benefits of using contactless payments cannot be undermined. Cash and cards are slowly losing significance as digital payment methods (merging technology with rapidly developing consumer needs), are rapidly taking precedence. So what are the most important benefits that both customers and merchants alike can take advantage of by using contactless payments? Here are a few:

  • It’s Quick

Contactless payments are estimated to be completed within 15 seconds and they are able to work twice as fast as regular cards. What greatly expedites the process is that there is no cash handling and less processing. With transactions occurring at such a faster rate, no long lines are likely to build up, moving customers quickly in and out of the store. 

  • It’s Safe

If you were ever to misplace or lose your card, you do have the options of either freezing your card or contacting your bank, who will dismiss and rectify any fraudulent payments. A built-in protection guarantees that the same transaction doesn’t happen twice by accident. If the information were to be stolen, the numbers from the card cannot be decrypted. This is because “unique numbers” are utilized for transactions that don’t correspond to the card numbers. 

Also, every card has a small limit per transaction, that unless it’s altered, the customer receives protection from large-scale and unauthorized purchases. 

  • Enhanced Customer Service

Because contactless payments result in speedier, more secure, and seamless transactions, businesses will see a dramatic reduction in cart abandonment. Why? The average transaction value actually goes up when the customer is not limited by the amount of cash they are carrying. An efficient payment process also comes into play. 

For most contactless transactions, there is no verification required. There is also no need to print out a receipt unless requested by the customer. All of this greatly reduces the time the customers spend at checkout. 

Digital Payments Are Here To Stay

With ongoing efforts to stop the spread of the virus, more government officials worldwide are requiring citizens to continue social distancing. Also, with the uncertainty as to when all of this will end, digital payments seem to have gained a foothold on society worldwide. Contactless payments are definitely here to stay. 

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.