Tap & Go payment technology has grown in popularity over the last year, for good reason. It offers a number of benefits for both merchants and their increasingly mobile customers.
Canada leads the pack in adoption; one in ten credit card purchases in-store now use Tap & Go technology. It’s definitely worth a look for retailers, considering transactions valued at less than $25, also known as micro- or low-value payments, accounted for $1.32 trillion in U.S. consumer spending in 2003* and were estimated to be almost $1.7 trillion of personal consumption
expenditure in 2005.
Customers are beginning to expect the convenience of this payment system on smaller purchases. Their ability to complete the purchase without ever letting the credit card leave their hand is a huge benefit for those concerned about account safety.
Tap & Go also caters to customers who prefer not to carry change or small bills for smaller purchases. It has the added benefit of helping to reduce payment processing time for retailers, as it eliminates the need for people to fumble or dig around for change at checkout.
Making the switch to a Tap & Go system is relatively simple for merchants. Our Vivopay 4000 system, for example, has traditional swipe capabilities built in, in addition to the contactless payment device. Merchants can accept Visa, Mastercard or American Express payments, as well as debit and echeck, from one terminal. Customers with Mobile Wallet-equipped smartphones can tap their phone to pay, using this system.
Fraud prevention measures are a critical aspect of any payment processing system; to that end, the Vivopay 4000 is PCI PED compliant.
Customers appreciate the flexibility and speed of service in retail situations where Tap & Go payment is an option. Regular, small purchases, such as a morning coffee, a newspaper, lunch to go or cab fare, can all be made simpler with this technology.
This ease of use can act as a sales driver; customers are more likely to make your store their outlet of choice for small, regular purchases if payment processing is quick and they can get about their business sooner. The Vivopay 4000 also allows you to process gift cards and loyalty cards on the same terminal, which increases customer loyalty but also helps to prevent fraudulent use of gift cards. The balance remaining is displayed by the terminal and the card cannot be tampered with, as is the case with paper certificates.
As retailers increasingly make the switch to more mobile-friendly, convenient payment processing and customers come to expect it, the time for retailers to make the switch is now. Are you using Tap & Go payment technology? Share your tips and experience in the comments!
*2006 Visa estimates. Pinkerd, Stacey. Address. 4th Annual Micro and Small Payments Conference. NYC, 28 November 2006.
