Why Contactless and Mobile Payments Increase Retail Sales!
22 Jul 2019
Why Contactless and Mobile Payment Increase Retail Sales
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New data may be seen to suggest that a recent rise in credit card transactions and retail sales is more than a fortunate coincidence. Retail sales in Cyprus rose 4.2 per cent year-on-year in April 2019 (Ministry of Finance, Cyprus) while credit card transactions rose by 20 per cent during the first six months of 2019 compared to the same period in 2018 (JCC).
There’s no doubt that more consumers are using credit / debut cards for everyday, fast and easy payments rather than cash. The importance of credit card gateway services and getting on board with a payment solutions provider is increasingly clear for all types of businesses, whether a retail store, small café or bar.
Financial technologies could soon nearly triple
The research data shows that the largest volume of card transactions occurred within utilities, supermarkets, restaurants, bars and hotels, and follows previous high growth figures in the same sectors for the use of contactless payments. Food and beverage, in particular, have seen contactless jump from below one in five (17 per cent) in 2015 to more than half (57 per cent) of all payments by 2017.
At the same time, business adopters of payment by mobile phone say they are reaping the benefits provided by Fintech technology (Worldwide Business Research Insights). Small businesses, in particular, continue to play a leading part in adopting financial technologies developed by companies such as SIX payment services. It is estimated that the current average adoption rate of 25 per cent worldwide could soon nearly triple to around 65 per cent.
Mobile payments “encourage shoppers to spend more”
Data released in early 2019 found that half (52 per cent) of retailers thought that mobile payments “encourage shoppers to spend more per transaction than using conventional payment methods” and more than four in five (81 per cent) said that a mobile payment was not only easier they believed it “encouraged customers to shop more frequently”. Mobile payments also help small businesses to improve their internal administrative processes, such as receipting. More than one in four (26 per cent) of retail store owners highlight contactless transaction as a significant benefit.
Research worldwide also reveals that, on average, nine in ten (89 per cent) of consumers are aware of the existence of in-store mobile phone payment platforms. The EY Global FinTech Adoption Index 2019 confirms that take-up is “progressing at a much faster rate than initially expected” with four in ten (38 per cent) of merchants claiming that greater engagement by improving convenience and customer experience in real time was the biggest benefit.