Volanté Systems

Contactless Payments: Say No to Germs and Yes to Security

Contactless payments, increasingly popular in hospitality and food industries, offer hygienic, secure, and efficient transactions by reducing cash handling, minimizing germ transmission, and enabling quick, encrypted tap-to-pay methods using cards, mobile wallets, and wearable devices.

The Payments Buzzword of 2020 and 2021: “Contactless”

Contactless payment is now both the present and the future of transactions. In its simplest form, a contactless payment is completed by tapping a card or device over a terminal that processes the transaction. Consumers are increasingly using chip-enabled credit cards, mobile wallets, employee badges, and wearable bracelets to make payments safely and conveniently.

In the hospitality and food and beverage industries, contactless payments offer several benefits:

1. Reduced Cash Lowers Operational Expenses and Increases Security

Reducing the amount of cash handled by your business decreases vulnerability to theft, whether by employees or others. It also lowers operational expenses associated with managing cash floats. As fewer people carry cash—opting instead for the security, reward points, and other benefits of credit and debit cards—bill splitting and payment processing have become easier in hospitality settings. Transitioning to alternative, more popular payment methods can help your bottom line.

2. Going Cashless and Contactless Is More Hygienic

Physical currency changes hands frequently, increasing the risk of germ transmission. Studies have shown that cash can change hands at least 55 times a year. With heightened awareness of hygiene, customers are seeking more sanitary dining experiences and payment methods. Contactless payments allow diners to pay using only their own devices or cards, eliminating the need to handle shared devices and reducing the spread of germs.

3. Contactless Payments Are Quick and Secure

According to Visa, over 40% of their in-store transactions outside the US use the ‘tap’ function. Patrons feel confident in the security of contactless transactions, which are protected by encryption and are extremely fast, eliminating the need for signatures or PIN entry.

Contactless payments extend beyond credit and debit cards. Employee badges, wearable devices, and building access fobs can also be used for contactless payments. For example, in corporate dining settings, employees can use badges with pre-programmed meal plans or payroll deduction programs, making payment convenient and reducing cafeteria wait times. These payments are facilitated by barcode or RFID-enabled technology, linking the card to a set of credentials.

Businesses looking to adopt contactless payments should consider options beyond credit and debit cards, such as integrating gift cards into mobile wallets. This allows guests to use their mobile wallets to check out just as they would with a physical gift or loyalty card.