The world is slowly moving towards a digital ecosystem. Digitization has planted its roots deep into society and is reaching almost every aspect of life. One can’t also deny how it is making life easy. When it comes to making payments, contactless online payments solutions are successfully taking over cash transactions. A J. P. Morgan report is testimony to this transformation. According to it, almost 75% of e-commerce payments in India in 2019 were made through digital payment systems. Cash payments contributed only to 17% of all transactions. This is a serious wake-up call for all businesses to equip themselves for contactless payments.

What is a Contactless Payment System? Why is it Important?

Contactless payments are an online payment mode that facilitates the consumer to pay for goods and services. Credit cards, debit cards, UPI, net banking, and other online means can be used for payment. Regular brick-and-mortar businesses can acquire a Point-of-Sales (POS) Terminal with the support for contactless payments. Online businesses, however, can opt for a payment gateway or link to replace their pay-on-deliver services. The most notable example of such a service in India is Zaakpay. The payment links hosted by Zaakpay help customers make payments without touching common surfaces like card machines and promote cashless payment systems.

Contactless payments can make the process of payment collection streamlined and seamless. The customer doesn’t have to worry about keeping cash handy for making a purchase. The merchant, too, is saved from the hassle of making multiple visits to the bank to deposit the earned money. Thus, the online payment system is a win-win situation for both. Several other benefits make contactless payments a viable option. Here are the top five of them.

Here are the Top 5 Business Benefits of Contactless Payment System

• Safe and secure transactions

Contactless payments take place through a digital payment system that provides absolute security to the customer. This takes off any worry of losing sensitive payment credentials of the mind of the consumer. Nowadays, Gateways come with Payment Card Industry Data Security Standard (PCI DSS) and Secure Sockets Layer (SSL) certifications that encrypt the customer’s payment information. This is a full-proof mechanism against any potential cyber-attack. Contactless payments also provide payment security to the merchant. Often, merchants have to bear losses due to fake orders generated with the pay-on-delivery option. Online payment solutions can practically eliminate any such practice. 

Gateway services like Zaakpay offer additional layers of security through two-factor authentication and verification through OTPs.

• Fast and convenient

Digital transactions are much quicker than traditional payments solutions. A customer has to go to a bank or an ATM and withdraw cash to make a cash payment. This takes time and limits the customer’s purchasing power to the cash available in hand. Such trips to the ATM are required quite frequently. A cashless payment system, such as the contactless systems, makes the whole payment process much more convenient. The customer can pay by whatever means they find the best. There are credit cards, debit cards, UPI, net banking, many types of mobile wallets, and much more. It takes hardly 5 minutes to make a transaction. The customer enjoys a quick and easy way to disburse payments for products and services.

• Increase customer satisfaction

It is human nature to look for convenient alternatives and save time. Customers will always be more satisfied with businesses that invest in providing them with a convenient experience. Online payment acceptance increases customer satisfaction significantly by providing them with a seamless purchase experience. Not only do they have to devote less time to the purchase but also make fewer efforts. From within the comfort of their house, they can browse and order their desired product. Making the payment also becomes easy. They also receive an immediate notification of a successful transaction. All of this leads to more customer satisfaction and trust in the business.

• Streamlined payment solutions 

An online payment system is much more organized than a traditional one. Traditional payments involve counting currencies or validating cheques. This can become a risky and challenging task, especially for more significant amounts. Both the customer and the merchant have to check and verify the payment. The merchant also has to visit the bank to deposit the payment. An online payment solution, on the other hand, is way more streamlined. The customer has to enter the value of the transaction to initiate the payment. 

The merchant also receives a confirmation of the same upon a successful transaction. The amount gets directly deposited in the merchant’s bank account, which saves frequent visits to the bank. Regular statements are also available for tracking payments. It also caters to the timing demands of the present generation. Customers, nowadays, prefer shopping at their comfort. This can also be sometime around midnight. With online payments, this doesn’t become a problem as they are active 24/7.

• No additional cost required

A common misconception among merchants is that online payment systems burn a hole in the business’ pockets. The truth is far from this, though. Services that empower a business to accept digital transactions are pretty affordable. The cost of maintaining the right gateway falls well below the revenue it helps generate. Effectively, it can be easily accommodated within the budget of the business. It saves several costs for the business, including the labor and travel cost associated with depositing cash in the bank. It also saves labor costs by generating automated transaction data directly fed into the management and accounting system. Services like Zaakpay offer customer support that protects the merchant from fraudulent, suspicious, or incomplete transactions. This keeps losses due to frauds at bay.

The Takeaway

Contactless payments are no longer a luxury that customers sometimes opt for. It has become a need of the hour. Businesses that spend too much time adapting to the online payment system might lose out on many sales. Merchants must analyze the available payment solutions and quickly opt for a service that works the best for them.

Zaakpay is one of the leading providers of contactless payments in India that helps merchants and customers enjoy its various benefits. With Zaakpay’s payment links and payment gateway, customers can make instant payments, enjoy faster checkouts while businesses collect payment in the most streamlined and cost-effective manner.