The number of people using contactless payment terminals to pay for purchases has increased by 100 per cent over a 12-month period, according to research from the National Australia Bank (NAB).
This type of payment system allows customers to make transactions with their cards for purchases less than $100 without having to enter a PIN, or provide a signature verification.
“Contactless technology allows businesses to provide a superior customer experience. Customers are served faster, which is especially important during peak times,” said NAB acting manager for cards and personal loans David Berry.
“The operational costs associated with cash handling, transportation and security are also reduced.”
“Micro to medium businesses are now getting on board having seen the many business benefits of using this payment capability and this is where we expect to see the next spike in growth,” said Mr Berry.
Businesses that used contactless payment technology the most have been service stations, supermarkets, cafes and stadiums. As these types of retailers can often experience large influxes of people periodically through the day, this payment option creates a way for them to painlessly cycle through the many customers.
“One of our larger merchants who recently adopted contactless payments reported that almost 40 per cent of card-based transactions during the first month of using the technology were contactless,” said Mr Berry.
This signals that the payment method may be becoming a preferred option for Australian consumers, further indicating the benefits for some retailers to adopt it in their stores.