Have you been using cards to make payments? To tell you the truth, this is not the most efficient and modern way to make payments. In finance, there is a relatively new way of payment – contactless payments.
Contactless Payment – What does it mean?
Contactless payments are payments made without physical contact with the point of sale (POS) device. If you ever go to a Mcdonalds’, you might have noticed they have put up self-service screens, you order through the screen, and then you make payment. They have a POS device (Moneris) attached to the screen, but you can also tap on the go.
These payments are more or less through your Debit card or Credit card (Clover). Some platforms help you with the transaction. If you ever wonder about making your transaction easy or if you forget your card at home, how are you going to make the payments?
For this, contactless payments are your friend. Popular contactless payment apps like Apple Pay, Google Pay, Samsung Pay, etc., are apps in your phone that are not present physically but have the monetary value to pay for your purchases.
How to Make Payments?
POS like Moneris and Clover are seller-friendly devices and applications that help with a seamless transaction. The payments through these apps work on RFID (Radio Frequency Identification) or NFC (Near Field Communication).
These are done through cards with magnetic stripes, but the concerns of hacking and fraudulent use of magnetic strips have been common since the rise of these cards in the late 90s.
The payments through the cards are easy; there are two ways you can make the payments:
- Insert/Swipe the card: POS has a place where you have to swipe the card or insert the card. This way, the Moneris or Clover reads the magnetic stripe data and receives the information and payment. The POS device acknowledges that payment is done and usually prints a receipt for payment confirmation.
- Tap-and-go: The POS has a screen that reads the magnetic stripe. The card doesn’t have to be inserted or swiped, you just have to place the card on the screen, and it gets the payments and information through the magnetic stripe.
Debit and Credit cards are easy to hack, as the magnetic stripe holds all the critical information; once a person gets hold of your card, they can easily misuse it. This is not the case with contactless payment. There is less chance of fraud and copying as the information doesn’t enter any POS.
Contactless payment uses the app on your mobile device to transfer the payment to the seller. The seller would have given the information on their website or through email or message that you would receive once you confirm the order.
The sellers also find contactless payments easy, especially during and after the pandemic. The economy still needed to thrive when the world was on lockdown. The sellers were selling their products and services online, but they didn’t want to get in physical contact with anyone as everyone was in isolation and lockdown. The easy way out was online payments.
Online payments are also a major part of contactless payment. You have the bank apps and the receiver’s information, and you just click on the right section, enter the amount, and press send, and the receiver will immediately receive a message. The buyer will also receive a message from their bank that the amount has been deducted from the payment. This is a secure payment method with almost no chances of fraud and theft.
Benefits of Contactless Payment:
Contactless payment has proven to be the safest way to make transactions. There are multiple benefits for both parties (buyers and sellers).
- Faster transactions: sending and receiving money is just a click away. You can just tap on the bank app on the Google Pay app or whichever app is appropriately installed on your phone and just make the payments. If you are on the receiving end, you have given your bank or wallet information where the amount will be credited.
- Satisfaction for both ends: due to faster transactions, a level of trust is built between the parties, making it easier to do business with each other in the future. This makes both parties find each other reliable and satisfied with doing business together.
- Lower costs: this is primarily for the sellers. Having contactless payments or online transfers means that there is less or no need for having cashiers or physical cash collection units for your business.
- No need for carrying cash or cards: this is the easiest it can get. You just have to have your mobile on hand (which is always, of course, in our hands because we follow the world through it!), and that’s it! No need to carry a physical wallet or any cards with you.
Odoo Platform:
Odoo Platform is an app that helps with managing the e-Commerce for your business. Multiple business management software tools fall under the umbrella of Odoo.
Having a warehouse and managing it, accounting, CRM, etc., are all included in the services. Similar to these services, the collection of payments is also supported through reputed software like; Clover and Moneris.
The transactions are made smooth and instant by connecting the software with the company business management software that deals with CRM and sales. This is beneficial for the buyer and the seller both. Not having to carry cards to the outlet is one less hassle to worry about, just scan the barcode with your phone camera or make payment by online transfer, and you are done with buying your favorite shirt!
Many ways are being introduced, thanks to the Pandemic; now, people trust such transactions more and are more inclined towards contactless payments. The sellers are also relaxed as they get real-time information about the payments they receive, and there is a lower chance of fraud.