Smartpay : Checklist for contactless

Trying to work out whether to give contactless payments the thumbs up or thumbs down? We can help. Just answer the questions below.

If you answer 'yes' to two or more, it's time to switch on contactless.

• Are your customers asking for it?
  1/3 of customers are frustrated by retailers without concactless[1], so if your customers are asking for it, it's time to listen.
• Do you have queues at peak times?
  Customers often walk away when they see a long line. Contactless is faster and easier, so it can help you reduce lines and encourage customers to keep coming back.
• Do credit cards make up a high proportion of your total payments?
  If most of your customers are paying you by credit card already, then introducing contactless has less potential for reducing your fee-free EFTPOS transactions.
• Are younger people a key customer demographic for you?
  Younger people are the biggest contactless users and are more likely to embrace new innovations like mobile payments.
• Do you have low average transaction value?
  Some banks offer a low fixed fee for using contactless for low transaction value purchases (less than $15), which could significantly reduce your merchant fees if your customers are already paying for these transactions by credit card.
• Are you happy to absorb some additional costs?

You can't add a surcharge to a contactless transaction to cover your merchant service fees. So if you currently do this, you'll need to prepare your business to absorb these costs.

• Is fast service at the till important to your business?
  If you run a busy café, a bakery or shop, then tap-and-go could help you seriously speed things up. Your customers spend less time waiting, and more time singing your praises.
• Want to build better relationships with your customers?
  Because your customer isn't busy punching terminal keys, you have more opportunity to chat and turn your occasional customers into your regulars.
• Is appearing innovative important?
  Contactless is where everything is heading, especially with ApplePay and AndroidPay now a reality. The checkout is a key customer touchpoint, where you can demonstrate that your business is cutting-edge.
• Do you have security concerns about handling cash? Contactless means customers don't have to carry cash and retailers don't have to handle or store it, and transactions are digitally recorded and traceable.

It's time to call your bank and ask them about enabling contactless payments and if you have more questions, the team at Smartpay are here to help.

Tip! You can't add a service or surcharge fee to contactless transactions

[1] Mastercard New Zealand Annual Survey 2017