Why are Retailers Prioritizing Contactless Payments?

By: Retail CIO Outlook | Wednesday, October 14, 2020

With social distancing becoming the new regulatory mandate, the retail industry is moving towards contactless payment technologies.

FREMONT, CA: A Touch-free payment has now become the new trend driving the operational aspect of the retail industry today. The consequences that are brought about by the pandemic are resulting in a new business ecosystem. The adversities that are raised by the outbreak of the novel COVID virus are being exceptionally complimented by the innovations and approaches, which are redefining the payment models in the retail landscape. With the customers and most of the forward-looking retail stores accepting the novel contactless methodologies, the business is revamping itself while restarting in the post-pandemic world.

Contactless payment is the go-to innovation in the realm of retail today. This trend is also acting as a boost of agility and business continuity. Helping the retails in the modern market to keep the business on and explore newer and more dynamic opportunities. These touch-free payment methods are also known as tap and go or tap and play methods. As these names suggest, the customers can make the payment by simply tapping on the payment card or a supporting device, which is more like a smartphone, smartwatch, a key fob, fitness tracker, or even a mere card reader that is integrated with contactless payment technology.

The core tech algorithms that run at the back end of the contactless payment application do not need the user to swipe or enter any information such as the personal identification information (PIN) or even sign the transaction. The contactless technology is embedded in a payment app or a digital wallet that can be used via a smartphone. The apps store the information of the payment card, such as that of a debit or credit with the maximum security. RFID technology is also used as a way to embed payment protocols and take the touch-free payments forward. With the emergence of robust and innovative contactless payment methods, the retail industry has found all the right reasons to celebrate its business.