As contactless payments rise, here are the 3 main factors driving retailers to adapt the new technology and eventually help drive consumer adoption.
- Higher Speed: Contactless payments are faster and easier. They expedite check out, relieving a massive pain point for retailers and saving consumers time.
- Premium Technology Means Premium Consumers: Apple Pay, and contactless payment apps like it require an Apple device, or in other cases a smartphone, which is still considered a premium product. Attracting consumers with higher income profiles opens the retail opportunity for additional, higher priced add on purchases and increased Average Order Value.
- Personalized Consumer Experiences: More consumer data means a more personalized consumer experience. The more personalized the experience the stronger the retailer relationship becomes.
Contactless payments do represent a mutual opportunity to streamline the retail process. The slow adoption is to be expected since it means total disruption to a market and process that is decades old. However, consumers and retailers are adapting and the market on both ends needs to be ready.