Article by Dale Buckey- Owner at Tap & Pay. Developer of the Pay.band
Three ways to increase mobile NFC contactless payment acceptance
There has been a lot written the past few days about a “stalled satisfaction” with the Apple Watch and Apple Pay. Along with that is disappointing news from mobile NFC devices (Near Field Communications) that support Google Pay and Samsung Pay, which has been negligible at best.
The attached recent articles at the bottom of this letter outline some of the reasons for the slow adoption of NFC payments, which includes the switch to EMV (Europay, Mastercard, Visa) chip and signature in the U.S., and its’ outlying effects. I will offer solutions to overcome the hurdle of paying with Mobile NFC Devices.
First, I think it’s important to recognize that NFC and EMV are companion technologies. This was written in the SmartCardAlliance.org’s latest white paper titled:
EMV and NFC: Complementary Technologies Enabling Secure Contactless Payments
“NFC is not a payment technology; it is a set of standards that enables proximity-based communication between consumer electronic devices such as mobile phones, tablets, and personal computers. NFC and EMV are companion technologies. NFC applies to how devices communicate; EMV applies to payments made with contact and contactless chip cards or with a mobile NFC device emulating a contactless chip card. Contactless payment transactions made using mobile NFC devices use the same infrastructure as contact and contactless EMV chip card transactions.”
Here are the 3 main reasons for the current Mobile NFC Device, User Experience (UX) fail.
Reason # 1. The majority of customers aren’t familiar with how to use NFC contactless terminals with either their phone, Apple Watch or other NFC wearable payment device.
Solution- Train your retail managers and cashiers on how to operate and walk new customers through the checkout process. I place the responsibility of this directly on the shoulders of the terminal makers and POS (Point Of Sale) operators. These two groups benefit and make money when they “sell” new terminals or upgrade a POS system.
The companies I addressed in the Open Letter each need teams of experienced checkout specialists that train employees and staff. The checkout specialist needs to convey the intricacies of the contactless payment terminals to their customers. And the checkout specialist “customers”, are the stores’ and their employees.
Reason # 2. The majority of human consumers are afraid of failure. Nobody likes to make mistakes, or look inept, especially while holding up a line, in front of impatient strangers.
Solution- This solution addresses contactless equipment education again. But this time it’s directed towards the consumer. Signs, flyers, informational videos and “practice apps” should be made available from the credit card giants, Mastercard, Visa, Discover and Amex.
The aforementioned group of Credit Card companies should “join together” and create a national campaign, geared to the consumer on how to get the most from their contactless credit cards. It seems the CC companies have only touted the benefits of their new chip cards and not the “how to” properly use them. It would be entirely to the credit card companies benefit. EMV along with NFC is not going away anytime soon. #ProTip- install a sign visible from the checkout lane designating contactless status prior to reaching terminal.
Reason # 3. The majority of people waiting in the checkout line simply don’t care about the new technologies. There’s no reason for consumers to take the time to learn about NFC or spend money on new watches or smartphones.
Solution- Store owners- Start a new aisle! If you want to get consumer attention, give them something back, Grocery, Big Box and drug stores all need to find room for paying customers willing to learn and use their Mobile NFC Devices and EMV contactless cards. Reward them. Loyalty them. Point them.
Big stores- this one is on you. Take one of your “12 ITEMS ONLY” lanes during peak hours, make it “NFC ONLY” and see if those willing to learn and work with companion technologies get out of the store quicker, while adding additional room for those that don’t.
https://techpinions.com/apple-watch-and-dissatisfaction/42509
http://qz.com/557652/half-a-year-later-the-apple-watch-feels-like-a-stalled-platform/
