Ø revenue Ø Enhance customer satisfaction resulting in

Contactless payment
systems are credit cards and debit cards, key fobs, smart cards, or other
devices, including smartphones and other mobile devices, that use
radio-frequency identification (RFID) or near field communication (NFC, e.g.
Samsung Pay, Apple Pay, Android Pay, Fitbit Pay, or any bank mobile application
that support Contactless) for making secure payments. The embedded chip and
antenna enable consumers to wave their card, fob, or handheld device over a
reader at the point of sale terminal. Contactless payments are made in close
physical proximity, unlike mobile payments which use broad-area cellular or
WiFi networks and do not involve close physical proximity.

    Some advantages of contactless payment

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The contactless card
payment method is faster to use. In order for the customer to pay, all they
have to do is wave their card over the RFID reader and anticipate the sign that
says payment has been completed

Tap transactions’
average duration takes about 15 seconds. By comparison, magnetic strip card
transactions take 25 seconds and cash takes 34 seconds. In today’s fast-paced
world, every second counts!

Contactless cards
utilize secure encryption standards. Triple DES encryption makes it virtually
impossible to steal data

The contactless card
never transmits your card number. Instead, the RFID chip within the card
creates a unique number for the transaction

Consumers don’t need
to worry about typing errors or forgetting their code

Retailers no longer
have access to your credit card information

You are able to keep
track of rewards via supported apps and use points for your purchases made in
places like coffee shops

Convenient and quick
checkout payments mean reduced line ups, so customers can move on quicker with
their lives

    Some advantages of contactless payment

Gaining more
customers as most people no longer carry cash and prefer using their
Debit/Credit cards or mobile devices

Affordable and easy
for merchants to set-up with trusted merchant service providers

Ease the line ups at
checkout points and speed up the efficiency of the queue so merchants can
increase their revenue

Enhance customer
satisfaction resulting in greater repeat business

Less hassle to train
staff on closing tills and balancing cash at night

Managers can focus
on operations and coaching staff on other important skills than dealing with
cash handling issues

Ease the checkout
experience for customers

Streamlined payment
processes reduce operating costs and improve operational efficiency

Increase customer
spending by increasing frequency of purchases, as customers won’t shy away from
a quick tap compared to a more involved alternative

Increased loyalty
for customers who prefer paying with tap

HSBC Bermuda is
planning to extend the ability to make contactless payments to its Visa debit
cards early next year.

“This functionality
which was previously referred to as PayPass, has been available on our cards
for some time. Over the past 12 months we have seen growth at a rate of 350 per
cent in this type of transaction in Bermuda,” said a HSBC Bermuda spokesperson.

“This trend is
expected to continue over the coming years and we anticipate a more immediate
and significant uptake over the next six weeks, due to the America’s Cup
Village also being ‘contactless’.”

The spokesman added:
“In order to promote the technology we are currently running a promotion where
customers are entered to win a trip to Las Vegas every time they use their HSBC
MasterCard. If they use ‘contactless’ they get three entries into the draw and
therefore triple their chances to win.”