Contactless payment technology: another way to make your new store customer-friendly.
Both Apple’s Apple Pay service and Google Wallet are available iPhone 6 and 6 Plus. The intention of these programs are to allow people to shop without even carrying a wallet. The phone becomes a virtual wallet using contactless payment technology to purchase goods – no more fumbling to find the right card. Of course, you need an app on your phone to make the transaction happen, but you don’t need to open the app. That happens automatically when you hold the phone up to the contactless terminal. The phone needs to be held two inches away. No contact necessary.
How does contactless payment work?
Contactless payment systems use radio-frequency identification to make payments. The embedded chip and antenna enable consumers to wave their phone over a reader – the retailer must have this technology to make the process work – at point of sale. And it’s not just your phone that you can use to make a transaction. The Apple Watch and the I-Pad can also do the job.
Is it secure?
Yes. The cardholder information used during a contactless payment transaction is really of no use to a would-be hacker/scammer. In fact, the store’s transaction system sees only a one-time transaction code for your purchase, not full details of your credit card. Yeah, how ‘bout that? A hacker would have to use an encryption key that is known only to the financial issuer.
Is it easier?
Is the claim of “One touch to pay with Touch ID” accurate? Yes and no. “Yes” when it works and “no” when it doesn’t.
In theory, you should just have to hold your iPhone near the contactless reader at the retailer’s register and Touch ID with your finger. You don’t even have to look at the screen of your phone to know your payment information was successfully sent. A gentle beep and vibration will let you know.
In practice, the retailer’s reader – for whatever reason – can’t always read your phone, even when it does make contact. And they can’t tell you why. It seems the bugs aren’t all worked out yet. Some retailers are actually turning off their readers because they don’t want to create extra waiting time for people in line when the technology doesn’t work correctly.
So, in conclusion:
It may not be the time for your new store to go “contactless”…but this technology is one if the technologies that has the potential to be the wave of the future for brick and mortar stores.