3 reasons merchants should embrace NFC
One of the biggest reason why small businesses haven’t implemented the technology needed to accept mobile payments is that there does not seem to be enough consumers using it to justify the effort. Unless you operate a business in Silicon Valley, the heart of the tech world, you might not be hearing a loud demand for mobile payments acceptance from your customer base. Even those who do enjoy tapping their smartphones to a terminal are likely to have their cards on hand for the majority of retailers that do not accept this form of payment, so it’s unlikely that a business that has not adopted the near-field-communications (or NFC) technology necessary to accept mobile payments will take a hit to their bottom line. In fact, there are many reasons why retailers might choose to not bother with implementing NFC. But this stance could come to haunt retailers faster than realized.
Here are 3 good reasons why you can expect your customers will not only be using NFC regularly very soon, but even demanding that retailers offer it at the checkout.
1. Say goodbye to the billfold and cash. Say hello to Millennials and Generation Z
Don’t balk at this prophesy; it’s already happening. Millennials are all grown up and represent the largest consumer group today, and Gen Z is on track to represent 40 percent of all consumers by 2020. Perhaps you’ve found yourself having a little chuckle in your head as you watch an elder writing a check at the grocery checkout as you stand smartly holding your EMV chip card. You know where I’m going with this; if you’re reading this article with the stance that traditional wallets aren’t going anywhere, put yourself at the checkout line in as little as five years from now and there might be a Millennial shaking their head at you waiting for your EMV card to approve. The younger generation is here and they are more demanding and empowered than any other generation of the past; they are going to be sure that all retailers are taking NFC payments… and soon! Don’t shrug them off as silly kids – they are indeed shaping the world of commerce as we know it.
2. Greater Security
What’s more secure? A card, or a smartphone?
Actually, let’s restate the question:What’s more secure, a card that has your name, number, expiration date and CVV code? Or your phone with which the card information is visible during that short moment that you enter it into your mobile wallet? Mobile devices not only encrypt your data immediately and permanently, but most smartphones have an extra layer of protection with biometric scanners that keep them from being used by those not intended. Consumers are realizing this benefit, which is another reason why they will soon prefer to leave their cards at home. Read more about this and everything else you need to know about the basics of payments in our interview with Vantiv Technology Program Manager, Lisa Killigrew.
3. NFC might someday enhance other aspects of your shopping experience
Merchants who advocate on behalf of their customers will win in the long run. NFC does not only apply to the checkout. It’s quite possible that NFC can someday instantly help customers to make better purchasing decisions. Imagine shopping at a grocery store and tapping your phone against the Yoplait yogurt tag in the dairy section, to find that not only is there way more sugar than you realized, that a healthier version is actually on sale down the aisle. Imagine your app tallying up all of the money you’ve saved throughout your shopping experience by purchasing sale items that you’d otherwise ignore? While this technology may not be available today, it’s coming and bringing a whole new collection of related technologies with it. And merchants who advocate on their customers’ behalf for technologies that simplify their lives, they become rewarded with loyalty.
If you’re reading this and worrying about what you’ll need to do to keep up, don’t. Implementing NFC technology is relatively inexpensive and simple. In fact, if you’ve upgraded your terminal or point of sale solution to accept EMV chip cards, there’s a chance you already have NFC technology since many EMV terminals include it. If you haven’t, consider NFC technology as an added benefit to implementing EMV. You’ll be saving yourself a lot of fraud liability and chargeback headaches by using EMV, and benefitting from the opportunities NFC provides at the same time.
Contact Vantiv for more information about our affordable EMV and NFC enabled terminals. We can provide you with the important details to consider, and get you set up in no time.