Man Using Paywave for Christmas Spending

Everybody knows that Christmas is when people are most generous, clamouring to buy the perfect gifts for all their family, friends, loved ones, and even strangers. And for many businesses, it also means picking up the pace in terms of stock, service, and even payment methods. Nothing is worse than losing customers due to long queues, because humans can be naturally impatient. If we can all grab a quicker option, chances are we will! To make the most out of the increased business pace that the holidays bring, contactless payment solutions are the answer.

Contactless payment solutions have been around in New Zealand for a while. But if you’re one of those people who still haven’t committed to upgrading your EFTPOS machine to accommodate the new Tap & Go Contactless Paywave Software, you may want to know what a contactless Christmas really means for Christmas spending, and for your business.

Speed Up the Transaction Process

Most new technologies will always try to speed up their respective processes – and it’s no different for EFTPOS machines and their paywave capabilities. It’s all in the name “tap and go”! No more awkward moments where your customer tries to remember their correct pin after punching in the wrong one, and no more trying to work out change after those odd discounts. They simply tap their paywave cards to the machine and they can go their own way, happy with their quick purchases, eradicating the need for typing in PINs or scribbling signatures.

Less Queues, More Customers

It’s fast for customers, but also very fast for businesses. This swift transaction process lets businesses serve more customers – significantly reducing queue lengths and queue waits. More often than not, EFTPOS terminals with contactless technology have quicker connections than their non-paywave counterparts as well, speeding up electronic transactions overall – it’s up to 7 times faster than traditional chip and PIN transactions.

Decrease Cash Handling

With more and more people opting to pay through paywave, the less a business needs to handle cash. This is very helpful for businesses – the less cash you handle, the better. There’s much more room for human error if customers use cash to pay, such as counting the wrong change or accepting the wrong amount of money in the first place. It also decreases the amount of time and human labour needed to count and process cash during end-of-day or when closing up shop.

Customers Will Spend More

According to research, credit card purchases average at $66, while cash transactions average at around $17 – that’s more than twice as much credit card purchases compared to cash payments. This statistic is especially inspiring during Christmas, when people are keener to spend hard-earned money on their loved ones for various presents and stocking-fillers. And with the convenience offered by contactless payments as mentioned above, you can be sure that you’ll see an increase in customer spending this Christmas.

 

Talk to us today about getting your POS system upgraded to include contactless paywave and tap your way to a special Christmas with POSTECHNOLOGY!

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Pros and Cons of payWave and PayPass fees in New Zealand

With Retail New Zealand last week saying to media that banks and credit card companies are charging Kiwi retailers too much for contactless transactions, a debate has sparked over whether moving to a contactless payment system is right for a business in this day and age. Fast-food giant Burger King is the latest company to ditch payWave due to the “significantly higher” fees the company feels they are facing for using the system, especially compared to contactless fees oversees.

As a veteran of the point-of-sale industry with 19 years of experience – and one of the most trusted experts on EFTPOS NZ has to offer – POS Technology are well-placed to weigh up both sides of the payWave/PayPass argument and judge whether going contactless is worth it for businesses in New Zealand.

What are the fees for contactless payments?

Fees depend on banks and providers, but research found that New Zealand retailers are paying on average 1.2 per cent for every contactless payment they process, with some retailers paying up to 3.5 per cent according to Retail New Zealand. Some businesses have started to move these costs onto the customer by introducing surcharges on contactless transactions, effectively discouraging them to pay via payWave/PayPass, while other companies such as Burger King have ditched it altogether.

Why are businesses moving to contactless payments despite the fees?

Regardless of the fees that are charged on contactless payments, their use in New Zealand has increased to an average of 25 million transactions per month, almost doubling since this time last year. While swiping used to be more common at POS terminals, it now seems that we are heeding the advice of Dora the Explorer: “Swiper, no swiping!”

More New Zealanders than ever are going contactless, and the advent of apps such as Apple Pay has allowed cardless transactions that still attract the same contactless fees for retailers.

Furthermore, research undertaken by Paymark and TRA showed that retailers who have chosen to use payWave and PayPass in their stores have enjoyed double the sales growth of those who haven’t, and double the overall number of transactions. This perhaps is due to the size of the companies choosing to use contactless payments as opposed to those not as, on the whole, most large retailers allow for payWave and PayPass

Is allowing for payWave and PayPass worth it?

At the end of the day, the question of whether allowing contactless payments is worth it at this stage depends entirely on your business’s individual characteristics and needs. For larger retailers where payWave will increase your customer base by allowing more transactions to take place, there’s an obvious benefit, however it will still have to be weighed up against the costs of fees. On the other hand, for smaller retailers with little potential for growth in their customer base, payWave is unlikely to bring economic benefits to your business.

However, two factors loom large for the future of NZ retailers when it comes to payWave. Firstly, as indicated by former commerce minister Jacqui Dean, regulation may be on the way for contactless payment fees. Secondly, and more importantly, the rate at which New Zealanders are moving toward contactless is increasing rapidly, and there is little doubt this is the way of the future, regardless of the current rate of fees.

If your business is looking to make a step toward the future by purchasing payWave/PayPass-enabled POS terminals, or want to upgrade your POS system in any way, the team at POS Technology are experts in all things POS-related and able to deliver state-of-the-art POS products all across the Wellington region! Contact us now to upgrade today!