Research and Markets, Dublin, Ireland, has issued a new report covering the contactless payment market. It highlights some of the advantages and speculates that millions more consumers are expected to reap the benefits this year of this technology. The report was developed to discuss merchant benefits and the business case for implementing contactless payment in the United States.
No More Fumbling for Cash, Counting Change, or Worrying about Whether You Have Enough Cash for a Purchase
DUBLIN, Ireland (BUSINESS WIRE)–Research and Markets (http://www.researchandmarkets.com ) has announced the addition of Contactless Payments: Delivering Merchant and Consumer Benefits to their offering.
Millions of U.S. consumers are already paying for purchases using contactless payment; with millions more expected this year, as new financial industry-backed contactless payment initiatives are launched nationwide. Consumers love the convenience and speed of paying with a contactless card or fob–no more fumbling for cash, counting change, or worrying about whether they have enough cash for a purchase. In many cases, consumers also don’t need to sign a payment card receipt or enter a personal identification number (PIN). While paying with a payment card but through a contactless interface may appear to be a minor difference, the impact on today’s busy consumer is significant.
Both MasterCard International and American Express have been conducting contactless payment pilots in the United States and have reported strong consumer approval. These pilots use radio frequency (RF) communication between a contactless device and a point-of-sale (POS) terminal to transmit consumer payment information. The speed, convenience, and control of contactless payment transactions result in consumers favoring the contactless payment device and the merchants accepting contactless transactions. Other contactless payment initiatives (for example, U.S. transit systems and ExxonMobil Speedpass) have reported similar positive consumer reactions.
Contactless payment is particularly attractive in merchant segments where speed and convenience of payment are essential (for example, quick-service restaurants, gas stations, convenience stores, parking facilities, transit services, entertainment venues, and unstaffed vending locations).
The new contactless payment initiatives in the United States also offer merchants opportunities to increase differentiation and customer satisfaction in highly competitive retail markets.
Merchants can implement a contactless payment solution quickly and easily and start accepting the contactless payment cards and fobs that are now being issued. American Express, MasterCard, and Visa have standardized on a single contactless payment standard in the United States, ISO/IEC 14443, and are implementing or recommending a contactless payment approach that leverages the existing payments infrastructure. What this means is that merchants can easily add a contactless RF payment terminal to their existing POS systems and start accepting contactless payment. The business case for certain merchant segments shows significant increases in revenue with a modest investment.
Merchants who can benefit from faster transaction speeds and increased consumer convenience should assess the business case for upgrading POS systems to support contactless payment, along with traditional magnetic stripe payment. The combination of positive consumer experience, standards-based technology, use of the existing payments infrastructure, and support from major financial industry players offers compelling business drivers for contactless payment. In 2004, merchants can take advantage of the nationwide rollout of financial payments industry-backed contactless payment solutions to create a strategic competitive advantage and increase sales.
For more information: http://www.researchandmarkets.com/reports/c3679.