Introduction
People do not worry when they forget their wallets at home, unlike before. Some don’t even carry wallets anymore simply because they can pay for almost anything from their mobile phones.
The days of cash-dominant transactions have significantly declined, and digital payments through smartphones dominate the current retail outlook. As the technology progressed, contactless payments gained traction and now, more and more consumers use and prefer payments that do not involve handling any cash.
For modern consumers, when it comes to paying for stuff, speed and convenience is what matter the most. Keeping that in mind, retailers like you must understand this evolution of payment systems and the shift from cash to contactless payments. And those who fail to adapt risk falling behind.
If you are among those retailers then do not worry, in this blog, you will learn how this shift from traditional payment methods to more advanced and innovative payment methods like scan to pay can drive your business to success.
So without wasting any time, let’s dive into it:
The evolution of payment systems
Can you recall how many or how often you see your customers bringing cash to pay for their shopping?
Surely, not very many. We have come a long way from the days when the only way to pay for what you buy was through cash or cards.
In the late '90s to early 2000s, there was a boom in online shopping with the introduction of digital payment systems. Shoppers began to adopt platforms like PayPal to pay for stuff. However, the introduction of smartphones played a key role in making contactless payments like QR code payments or payments through mobile wallets accessible to more people.
It is evident that consumers love convenience. And using a smartphone to pay is so much more convenient. As per Grand View Research, the market size of the global mobile payment was valued at USD 52.21 billion in 2022 and it is expected to grow at 36.2% CAGR from 2023 to 2030.
You should also note how the COVID-19 pandemic has influenced consumers around the world to opt for safer and contact-free payments. The significant rise in scan, pay, and go systems that use contactless payments for checkout processes is due to the challenges posed by the pandemic.
How contactless payments work in scan, pay, and go technology
Contactless payments are crucial in scan,pay, and go technology. They make it possible for your customers to scan the products they want and then pay for their shopping. Let’s break down how it actually works with an example:
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Ben (your customer) walks into your store and picks up products that he wants to buy.
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Now, Ben just needs to take out his mobile phone to scan the barcodes (or QR codes) of the products he wants to buy through your store’s dedicated app.
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Scanning barcodes (or QR codes) will enable Ben to see all the product info, including the price, size quantity, expiry, and more as he puts it into his basket.
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When Ben is finished scanning and adding all the products he wants to the cart, he can make the payment from the app itself without having to go to any cashier and checkout.
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Ben will then receive a digital invoice on the app, which will be verified when exiting the store.
See how simple is that. No need for cash, cards, or any physical contact.
Retailers like you often face situations where there are lots of customers in your store and there are long queues for checking out. Why? Just because of a traditional payment system.
Situations like these can be easily avoided with scan, pay, and go solutions. Your customers can just walk into your store, pick up any item(s), and instead of heading to a checkout counter, they simply scan a barcode (or QR code) on the product, confirm the payment on their phone, and walk out.
That's the level of convenience and speed you can offer to your customers with contactless shopping.
Benefits of contactless payments in scan, pay, and go solutions for retailers
Adopting a scan, pay, and go solution is not just about keeping up with technological innovations. These systems offer numerous benefits for businesses like you:
Faster transactions and reduced wait times
Contactless payments in scan, pay, and go solutions mean your customers can do faster payments and checkouts. They do not have to wait for their turn to checkout. And they can directly pay through the app itself after finishing their shopping.
This is both speedy and convenient for your customers. It also improves your customers’ satisfaction, which means they are more likely to shop with you again.
Lower processing costs
One of the major setbacks of traditional payment systems is their high processing fees. This often involves hefty fees when your customers use cards to pay.
Thankfully with scan, pay, and go technology and contact-free payments, most transactions take place directly between your business and your customer. Hence, there is no need for any transaction fees. This eventually means a significant saving for you considering the volume of transactions that happen.
Improved cash flow management
With scan, pay, and go solutions in place, you can get real-time updates on your business’s cash flow. Not just that but you can also track your sales instantaneously.
This can make it a lot easier for you to manage your finances, restock inventory, and handle accounting processes without the need to wait for transactions to settle.
Invaluable data collection and analysis
Scan, pay, and go systems that use contactless payments enable retailers like you to collect valuable customer data like purchasing habits, frequency, and preferences.
This data can be of great help when you are planning your marketing strategies, customer service improvement, and personalized promotions.
Contactless payments for hygiene-centric customers
You already know how contactless payments are the go-to option for many because of the COVID-19 pandemic.
Scan, pay, and go apps allow your customers to make various kinds contactless payments, such as QR code payments or mobile wallet payments. This type of system and payment method can help many stay as hygienic as possible. It will surely appeal to all your hygiene-centric customers.
Also read: How Scan N Thru Solution Redefines Retail Shopping Experience
Conclusion
You have seen and understood how contactless payments in scan, pay, and go systems offer a revolutionary way for retailers like you to streamline operations, reduce costs, and enhance customer satisfaction.
The benefits for both your business and your consumers are clear - from faster checkout times to lower processing fees and valuable customer insights.
As a retail business owner, now is the time for you to consider implementing scan, pay, and go solutions in your operations. This is not only to meet the growing demand for contactless payments but doing so will also future-proof your business. Consider it an investment that will give you long-term benefits.
Are you still having second thoughts? Explore Scan ‘N’ Thru - our cutting-edge scan, pay, and go solution tailored for retail businesses like yours.
With Scan ‘N’ Thru you will get a customizable contactless payment-enabled self-checkout solution, which will help you lower your operating costs, collect insightful data, improve the experience of your customers, and much more.
Not just that but many of your customers will thank you for having a payment system that lets them pay without any contact.
