Are you thinking about getting a point-of-sale device for your small business? But what does it mean?
‘Point of sale’ (or POS) refers to the spot where customers pay for their goods or services. During the pandemic there has been a major shift in customer payment methods globally towards contactless payment. So, it’s no surprise that people prefer to pay by card instead of cash.
While there are numerous benefits to introducing such effective payment methods, there are some considerations to take into account, too. Let’s have a look at the benefits and challenges of installing this system so you can make an informed decision.
Pros & Cons of Contactless Payment Systems
Table of Contents
There are two sides to every coin, and there are two sides to contactless POS systems.
The Pros
Faster Payments
Point-of-sale devices speed up the transaction process, resulting in faster checkout lines. Customers and business owners can both enjoy the ease that cashless transactions provide. This eliminates the hassle of looking for exact change or handling cash.
With contactless POS machines, you don’t have to wait for customers to punch in their PIN. The requisite amount is deducted automatically and deposited into your account.
Reduced Managerial Time
Did you know that a POS device keeps all your business tools connected and helps to schedule payroll? It is more than just a simple tool to process payments; it’s a hub that ensures seamless processing, enhancing the management side of your business. That’s why you should work with a reliable payment solutions company that can help you choose the right tools to enhance your business.
Current cloud-based POS machines come with all these inbuilt features within a single system. This allows you to access other applications and build a software solution that enables you to manage your business in the best way possible. This can save countless manual hours that can otherwise be utilized to strengthen other parts of your business.
Enhanced Customer Experience
More brick-and-mortar shops are switching to tap-to-pay technology for better accuracy and safer transactions. This is not only good news for your business but also your customers, who are happier for reduced wait times.
One study points out that around 64% of people in the UK and up to 96% in South Korea prefer contactless transactions. This is leading to the “death of the wallet” in many parts of the world. Setting up a contactless POS machine not only earns the loyalty of the customer but enables stores to optimize their loyalty programs to improve customer relations.
The Cons `
Technical Barriers
Going completely contactless can be challenging as it only works for customers who have the means to support such transactions.
To illustrate, the mobile tap-to-pay system requires that the customer have an NFC-compliant smartphone, which not everyone does. These technological limitations are certainly difficult to overcome for people who do not have access to such tools.
Limited International Availability
Contactless payment devices may not work internationally. Even if they share similar technology, certain mobile wallets that are popularly used in one country or on one continent may not be accepted abroad. These transactional limitations will vary from country to country. Also, they may charge a foreign transaction fee that can be quite expensive.
Setting up a POS device is an excellent way to stay in touch with emerging business trends. When you choose a contactless payment system, not only does it help to optimize your services, it also enables you to build revenue. Especially if you are a small business owner, it keeps track of all your transactions and reduces chances of error. This makes it a smart, quick, and efficient way to run your business. While there are certain challenges, the pros certainly outweigh the cons. If you don’t know how to begin, consult a reputable payment solution service provider to help you choose the right tool for your business.
