5 ways chip embedded credit cards are transforming your business
Swiping a credit card is becoming, dare we say...so 2015? More often than not, if you have a small-to-medium-sized business, or a large business for that matter, your customers are inserting a debit or credit card into your new EMV-enabled chip reader to make an in-store payment.
The transition began in response to new U.S. standards implemented in October 2015, designed to reduce card-present credit card fraud, and many merchants are now in full chip-card acceptance mode.
But did you know that in addition to guarding against fraud, there are many ways that the introduction of chip embedded credit cards are revolutionizing the way U.S. merchants and consumers do business? Let's take a look.
1) Welcome mobile wallets and contactless payments
Those new EMV-enabled POS devices not only accept chip cards. Most of them also accept near field communication (NFC) contactless payments. Why is that important? Because today’s early adopters and the future masses of consumers will likely be making at least some of their purchases using NFC technology.
What’s NFC? NFC uses a type of radio frequency to transmit secure, contactless communication between the latest mobile devices and that new EMV-enabled device you recently acquired. If you haven’t upgraded your POS yet and you’re seriously contemplating NFC, it's a good idea because the technology facilitates mobile payments. It allows your customers to use mobile wallets such as Apple Pay®, Android Pay™, PayPal and a host of other digital wallets with a wave or a tap near your POS.
For those not familiar with mobile wallets, customers can store their encrypted credit card data in their mobile devices, such as smartphones, and use them to make quick and easy purchases. In a second or two, the transaction is made and your line moves along. It’s the epitome of efficiency, and it’s catching on with every demographic.
According to the latest from Juniper Research, mobile wallet spending in 2017 will “rise by more than 30%...reaching $1.35 trillion.”
2) Attract and engage new customers
Younger tech-savvy consumers aren’t so young anymore. Gen X, now in their 40s and 50s, was the first generation to grow up with computers, and they expect the customer experience to be effortless, smooth and digital.
Bring on Millennials and multiply that expectation by about three. Business Insider notes a new study that says Millennials are driving mobile wallet adoption. The research found that “overall, just 16 percent of the general population had used a mobile wallet. But 33 percent of ‘late millennials’ and 36 percent of ‘early millennials’ had done so.”
However, don’t rule out Boomers. They’re just as likely to have the newest mobile devices, many of which come with fingerprint ID built-in, the simple way to authorize a mobile payment. Tap and touch, the bill is paid, and your customers are on their way. Who’s happy? Everyone.
3) Create loyalty programs and incentives
With mobile apps, you can build easy loyalty rewards into every payment. With an app, you and your customers can keep track of your own store’s rewards, plus some mobile wallets also give bonus rewards every time a customer makes a purchase with that particular service. The incentives are only limited by your imagination. The more innovative you are with mobile payments, the more customers you could attract. Think e-receipts, surprise discounts, and donations with purchase.
4) Provide exceptional customer experience
If you provide safer, easy payment methods such as chip cards and NFC contactless payments, your customers will view you as a bit of a trendsetter. Put up an Apple Pay and/or Android Pay acceptance sign in a visible location, and you might very well attract new customers and maybe even create some brand loyal ones.
It all comes down to the customer experience that mobile payments bring to your business. If your coffee shop moves customers through the line more quickly on their way to work than the café down the block, whose business do you think will be foaming up their cappuccinos?
5) Improve security, efficiency and sales
Ultimately, having an EMV-enabled POS system at your store or restaurant or service business can help you build your business’ reputation as a provider of secure payments. Start to use those EMV-enabled devices to accept secure contactless payments with mobile wallets, and it could transform your business for years down the road.
If you’re a merchant and have not yet upgraded your POS terminal, it’s wise to do so for security sake, liability risks, efficiencies, customer experience, and your bottom line.
Technology seems to accelerate every day because it is truly is. The world is transforming at a rapid pace. As a merchant, you need to stay on top of these fast-moving trends to stay ahead of your competition.Get more of your EMV questions answered by contacting Vantiv.