Contactless payment has been gaining increasing acceptance by consumers and retailers in environments where transaction times are crucial to the consumer experience and the retailer business such as the transit space. Contactless payment can be fast and convenient, and they offer consumers flexibility in making purchases.
Contactless payment offers a number of advantages over other methods of payment including cards and cash:
Consumers love the speed and convenience of payment with a contactless card – no more fumbling for cash, counting change or worrying if they have enough cash for the purchase.*
Consumers believe that contactless payments are more secure – the card never leaves the cardholder’s hands, thereby reducing the opportunity for the card to be skimmed.
Transactions are quicker as illustrated below.
Contactless products are new and appealing.
New form factors such as mobile phones, key fobs or USB devices that may better suit the cardholder's lifestyle are available.
There is less wear and tear on the card because it does not have to come into physical contact (ie: inserting or swiping) with the terminal.
In order for any new card program to achieve mass adoption by consumers, it must be perceived as offering value. Visa payWave provides a new way to pay for the cardholder with the convenience and appeal of contactless payments. There are significant enhancements over the conventional magnetic stripe payment cards:
Increased convenience — Visa payWave reduces the dependency on cash and the need to visit the ATM so often. Small ticket purchases, which are usually paid in cash, are now possible with Visa payWave. Consumers need not fumble for cash, count change or worry if there is enough cash for the purchase. In addition, there is no need for a signature or PIN.
Reduced waiting time — With Visa payWave, cardholders need to just tap or ‘wave-and-go’ for payment. At the issuing bank’s option, there is no signature or PIN required for authorisation. As a result, the payment transaction can be performed very quickly, and is less cumbersome than handling cash. Queuing time can be potentially shortened if other shoppers in the line are also using Visa payWave. Watsons, a major personal care chain in Taiwan, stated that by accepting Visa payWave, they experienced a 77 percent reduction in queuing time within their outlets. ^
Enhanced security — The cardholder now has full control of the transaction, as the Visa payWave card never leaves the cardholder’s hands. Cardholders may even be able to make payments without removing their Visa payWave card from their wallet or handbag.
Exciting consumer experience — A contactless application makes mature payment products more interesting to cardholders because of the novelty of contactless payment. Even though the payment product is essentially the same, cardholders perceive it as new and innovative. Visa payWave can eventually integrate into the consumer’s lifestyle and build the affinity to pay for small items. Using contactless payment could potentially be an enjoyable experience for consumers even if they are only used at certain locations. Unlike cash, card payment allows consumers to track their spending habits on low-value purchases. It could also encourage greater spending, as the consumer is no longer constrained by the amount of cash on hand.
Loyalty rewards — It is possible to reward the cardholder, even for small-value payments, if the use of the Visa payWave card is associated with a loyalty program.
Form factors — Visa payWave provides the opportunity to enable payment using a number of innovative form factors such as mobile phones, key fobs, and other personal devices that suit the cardholder’s lifestyle and provide a seamless payment experience.
