For many years now, c-stores and other quick service retail (QSR) outlets have been hearing about the promise of contactless payment processing. You have probably seen the commercials by now: customers can fly through the payment lines with a simple RFID card reader and enabled credit card. When connected to a high-speed credit card processing system, this can cut customers' wait times, encourage more spending and improve loyalty.
For years it seemed like this technology was more wishful thinking than anything else. Believe it or not, the time may have actually arrived. Contactless credit cards are beginning to reach widespread penetration within many major markets and the readers are less expensive and easier to deploy than you probably imagine.
As evidence of this trend, more and more issuers are sending their customers contactless-enabled debit and credit cards. Tens of millions of contactless-enabled cards have already been issued with technologies from MasterCard (Paypass), Visa (payWave) and American Express (express pay). The numbers will continue to grow as more banks join in and their customers' cards expire and are replaced with contactless-enabled versions. Retailers are following, but the adoption seems to primarily be within the big chains.
Another influence in the increased adoption is the continued integration of contactless technology into different, and unexpected, locations, devices and card forms. There are already cell phones with imbedded RFID payment chips, cutting out the card entirely. There are key fobs with imbedded chips and the New York subway system and taxicabs are being fitted with contactless readers.
Considering these developments, many small to mid-size retail companies are likely wondering if it's time to "go contactless." Concerns we've seen: Is the technology proven enough? Do we have the POS infrastructure to take advantage of the benefits the technology offers? Are our customers knowledgeable and confident enough to use it?
Discussion Questions: What types of businesses can truly benefit from contactless payment? How much benefit will even a great prospect for contactless technology gain from implementation?