Whether you trade online only or on the high street, technology is changing the way you take payments. You experience it when you go to the supermarket, the cafe or practically any retail or hospitality outlet. Wherever you make contactless payments, like the majority of the rest of the world, you’re taking advantage of near field communication (NFC) technology.
QR codes are everywhere, so using this technology in the process of taking payments is an obvious application.
Nothing matters more to a successful business than taking payments. While technology brings convenience to customers, to business it offers opportunity.
If you have a business to consumer enterprise (B2C), it should be no surprise to hear that you should be adopting near field communication (NFC) technology for payments and using QR codes to encourage trading 24 hours a day.
What is NFC payment and how does it work?
Near Field Communication (NFC) payment, revolutionises transactions by allowing them to be made simply by bringing two devices close to each other, such as a smartphone and a payment terminal.
For an NFC payment to work, both the customer’s device and the payment terminal must have NFC chips and be within a few centimeters of each other. Providing there is a WIFI link the payment process is quick, convenient and secure and these days, common place.
What else does NFC have to offer?
During the pandemic my local cafe stopped accepting cash payments. They asked for card payments only and contactless was ideal. ‘Cashing up’ became a breeze because there were no more cash discrepancies to find.
The cafe no longer needed to run to the bank at the end of the day to deposit the days takings. They were able to run software to facilitate stocktaking and analyse demand for staffing throughout the day and week so much more easily.
As a customer at the start it was irritating. Turning up to the cafe with my cash in hand only to be told I needed my card for payment. However, after a while it became normal so when the pandemic ended the card only payments business model didn’t.
What are QR codes and why use them for payments
A quick response (QR) code is a barcode that stores data. QR codes are usually square shaped patterns but can be modified. For instance you can have QR codes with curved corners or different shapes altogether. They are typically black but can be of any colour and many are branded with a business logo.
The camera or other app on a smart phone reads the QR code which can be printed on to most 2D surfaces from posters to product packaging.
The beauty of using QR codes is they operate all day, every day. They have no opening and closing times which means you can be doing business 24 hours a day, 7 days a week. A QR code can take information regarding an order and then direct the consumer to a secure, online payment gateway to complete the order. In effect a QR code allows a business to collect and store information and close the sale. In doing so it can drive sales and traffic to the business website or any other digital location.
These days it wouldn’t be unusual to find a QR code in the signature of an email, on letters or flyers or in the window of a car belonging to a small business owner keen to increase sales.
Security
Security is always a concern for any business or customer when making payments. NFC technology uses encryption and tokenisation, which significantly reduces the risks of fraud and unauthorised access to sensitive information.
QR codes are able to store information that helps to verify a customers identity. This means that NFC and QR codes can work together to reassure customers that making payments using the technology is safe.
And finally…
Technology is changing the way we do business. The most successful businesses look to integrate technology as it evolves to enhance the customer experience. Improving the method of making a sale by simplifying the payment process is important. While ensuring your business products are available to people 24/7 is fundamental to success.
The widespread availability of QR code technology and NFC means incorporating QR codes and using contactless payments is not just for big business. If you want your business to grow, using technology to drive and close sales is an obvious path.