During the Coronavirus pandemic, contactless payments have been in the headlines. Without them, it’s difficult to see how stores and customers would have handled physical money. Traditional points of sale aren’t hygienic as they involve several people handling cash, which is a COVID-19 hotspot.
When you stop to think about it, the way that you pay for goods and services has changed dramatically, thanks to significant advancements in tech. Historically, only cash has been used, whereas now, there is a plethora of options at a shopper’s disposal.
Below you’ll find a selection of methods that revolutionized the way you pay forever.
Essentially, smart cards are modern debit and credit cards that use chip technology. Previously, it was easy to clone the details and use them to commit fraud. Thankfully, Visa reports that EMVs have led to a reduction in fraud by more than 75%. The chip and pin method does have its issues – it’s easier to spend money and rack up debt, but this page has more info on freedom education if you need help – yet the traditional magstripe method was worse. Now, as the cards create unique transaction codes for every transaction, your money is a lot safer.
PoS stands for “Point of Sale.” These are the mobile machines that you see in smaller stores that don’t want or can’t afford the bigger, bulky card readers. In many ways, it’s the most radical advancement regarding consumer payments as it brings the business to the shopper. Regardless of where they are, it’s possible to encourage conversions, something that many companies struggle with, especially SMEs. Mobile PoS systems have become popular over the years as they build trust. How? It’s because businesses appear to go the extra mile, enhancing the customer experience to the point where they add lots of value.
The US is on the verge of a contactless payment surge that other countries around the world have already experienced. Evidently, it’s due to the COVID situation and people wanting to handle money less and less. Unlike the rest of the world, the States has plenty of potential for growth in the area as only 3% of card transactions don’t rely on swiping or inputting details into a reader. Therefore, this is one change that you might begin to see occurring in real-time. It makes sense considering it’s quick and there are measures in place to prevent fraud.
P2P, or Peer to Peer, applications come in different shapes and sizes. The most common is Apple or Android Pay, where you place your phone to a smart reader and the money is deducted from your bank account. Another version is when you use apps that require no money upfront. Ride-sharing applications such as Uber and Lyft are the prime examples of P2P apps and how they could become the norm within a short period. Like contactless, they’re incredibly accessible as everyone has a smartphone and keeps it on their person at all times.
How do you pay for stuff? Has your favorite method changed?