Contactless payments in India and their benefits to merchants

There is no denying the fact that COVID-19 has accelerated the adoption of digital payments in India and especially contactless payments. As more customers transact using contactless payment modes such as ‘scan and pay’ QR codes and contactless ‘tap and go’ using debit or credit cards, the environment is ripe for disruption. Even in other countries, contactless smart card has been the preferred choice of many developed countries such as France, Spain, UK, and Australia. Indian merchants are also slowly opening to ‘tap-and-go’.

Pine Labs saw over 12 per cent jump in contactless payments out of the total transactions in October 2020. Majority of payments terminals in India, are accepting contactless transactions, and there are exciting times ahead for our merchant partners as we come out with more products around contactless payments.

Even the banking regulator, The Reserve Bank of India increased the limit for contactless card transactions to Rs. 5,000 w.e.f. January this year. (Source Citation 1 provided in the end of the blog)

Benefits of contactless payments

Some of the advantages of going contactless at the time of payment acceptance are as follows:

In tune with the times

Not only are the transactions contact-free but they are typically processed quickly as the customers do not have to hand over their card to the merchant, use any other device to enter a PIN. It results in lesser transaction time, smoother checkout and improved user experience for customers. When you enforce contactless orders and deliveries, your business is seen in positive light by customers.

Contactless payments are secure

It takes just one tap to make a payment and it is as secure as swiping your card. The contactless card systems are secure, and only one payment is processed with one scan or tap. The card remains with the customers during this entire period, making it a relatively safer and more secure option for everyone transactions.

Multiple payment modes acceptance

In addition to the convenience and security of transaction, contactless payments can be done in multiple payment modes such as debit/credit cards, UPI, Bharat QR, etc.

Contactless payments are here to stay and can help your business grow. As per a survey, almost 30 per cent of participants have adopted contactless payment during the pandemic, and 70 per cent of them will continue to make payments using a contactless method. (Source Citation 2 provided in the end of the blog)

Don’t miss out on customers requesting for digital payments and go contactless today!
 

1 http://timesofindia.indiatimes.com/articleshow/79597438.cms 

2 https://www.paymentsjournal.com/contactless-and-covid-19/

{This blog was first published on Pine Labs website.}