Canadian consumers are offered plenty of ways to make payments, from SMS-based transactions to mobile web payments, near-field communication, and more. These are cashless ways to pay for gas, merchandise, and even your café latte.
The Mobile PayPass Tag, featured by the Bank of Montreal is a new addition, which makes it possible for cardholders to buy items through a sticker on their mobile. An email verification is sent for every transaction. Customers can make small purchases without having to carry cash with them. Tapping a phone over the reader is sufficient so that the transaction is processed.
What other benefits does the new technology offer? According to payment products division’s vice president David Heatherly, the Mobile PayPass Tag offers customers convenience and speed when it comes to making small-value purchases. Apart from instant processing, which is a major advantage, customers may choose to receive email notifications, reporting the merchant name, the amount, and the location of every purchase. Moreover, Heatherly assures that the PayPass Tag is durable and will stay affixed until the expiry date. It is manufactured to withstand wear and tear, and the chance is that users will change phones before the Mobile PayPass Tag stops working (Credit Cards).
PayPass offers other advantages, regardless of whether customers choose to tap their mobile phone, key fob, or credit card. Customers do not have to worry about fishing for coins or carry a lot of cash. Moreover, it is a secure and safe way to shop because cardholders are in control – it stays in their hand at checkout. It is handy to have at locations where speed is important, including gas stations, fast food joints, stadiums, and other places. In addition, PayPass allows for enhanced record keeping when it comes to small purchases (MasterCard).
PayPass offers benefits to businesses as well, making it possible to serve more clients, strengthening loyalty and enhancing security. According to MasterCard Worldwide, the Tap & Go Technology featured with PayPass speeds up in-store transactions by up to twenty percent. It is faster than using traditional credit cards and cash. For business owners, this translates into a larger volume of sales, and for clients, it makes for a valued and pleasant shopping experience. After all, what clients expect is positive and hassle-free customer experience.
What is more, merchants accepting PayPass have reported an increased spend ranging from 28 percent to 42 percent. The volume of transactions has increased up to 52 percent as well. Close to 80 percent of all purchases made is under $25, proving that the new technology is an excellent alternative to cash (MasterCard Worldwide). A major advantage is that in most cases, signature is not required for purchased items totaling under $50. This speeds up the check-out process at convenience stores, cafes, newsstands, fast food restaurants, and other locations. One enhancement is that even if the customer taps his credit card twice, he cannot be billed more than once. Notably, security features are a major benefit. Given that the client’s plastic sticker, key fob, or credit card never leaves their possession, this helps prevent identity theft (Let’s Geek).
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