Why are Contactless Payments Gaining Popularity?

NFC/contactless payment options such as contactless cards and NFC enabled smartphones with Apple Pay and Android Pay offer a faster and more convenient alternative to pay for purchases. Now, contactless cards have arrived in the Baltics.

Just recently, Swedbank introduced contactless cards to Estonian market and now all major commercial banks in Estonia are set to take this technology into use. “In Estonia, 60% of all the purchases are below 10€. Now it is possible to make these purchases with contactless card,” Eero Treumann, head of cash management sales support department at Swedbank explained.

But what are the benefits of the solution?

  • Security: NFC/contactless payment solutions maintain a high level of security for all transactions.
  • Speed: An NFC/contactless transaction is completed in less than a second while increasing productivity, generating more revenue opportunities & reduced queuing times.
  • Convenience & reliability: As there is no mechanical contact with the payment terminal or mPOS solution, risks of damages on the hardware and maintenance costs are reduced for merchants. Consumers don’t need to carry cash or have the exact change for small value transactions.
  • Acceptance: NFC/contactless payments are accepted worldwide - global interoperability.
  • Best customer loyalty: With the evolution of NFC/contactless technology, merchants will also be able to integrate their loyalty programs to enhance customer satisfaction.
  • Profitability: The rise of cashless transactions result in increased interchange revenue and additional revenue with new terminal rentals for issuers.
  • Competitive differentiation: Customers experience is improved and merchants can offer more services to these clients.
  • Limited fraud: Contactless help to drive a significant reduction in the cash in the economy and limit fraud with counterfeit notes.

Hansab is the official partner of Ingenico in the Baltics and all the POS terminals in our product range have contactless payment functionalities. View our products here: http://www.hansab.com/en/pos-terminals