Ingenico, a provider of payment solutions, says contactless technology will split the retail market this year, improving sales figures for early adopters and costing those who shun the additional investment in this burgeoning technology.
Ingenico, a provider of payment solutions, says contactless technology will split the retail market this year, improving sales figures for early adopters and costing those who shun the additional investment in this burgeoning technology.
According to a news release, in the last quarter Barclays issued its millionth Barclaycard, a contactless credit card, and announced the launch of contactless debit cards. Consumers are now driving the uptake of the card, unlike with chip and PIN in 2006.
But Ingenico warns that retailers must consider their customers’ payment expectations when investing in POS terminals this year. Those retailers who adopt contactless technology can expect swifter transactions, increased footfall and smaller queues.
“Consumers are demanding and have high expectations," said Gregor Rankin, Ingenico's marketing manager for northern Europe. "If they receive a new contactless card from their acquirer, they expect to be able to use it. It is not the case that every retailer in the U.K. has to invest in this technology today. However, for retailers that value customer service and demand the highest level of customer experience, it absolutely is something for which they should already have a strategy in place."
Rankin says in 2009, it will be important for retailers to differentiate themselves to drive customer loyalty.
"Obviously retailers planning to refresh their POS systems would be sensible to incorporate a contactless strategy into their deployment plan," he said. "Contactless terminals cost little more per unit than non-contactless versions. When you consider that it allows six times more transactions an hour than standard solutions, there is a strong case for investment. Retailers should consider what the right option for them is and make sure they aren’t missing a trick.”