In the era of digital payments and rapid technological advancements, merchants are constantly seeking ways to improve their payment processing systems and maximise their gains.
Barclays estimates that in 2022, over 90% of transactions eligible for contactless payments were paid that way. A higher spending limit in 2022 resulted in people using contactless payments for an average spend of £3,327 in the UK.
One way to enable merchants to improve payment processes is by implementing optimised contactless payments and partnering with a next-day settlement provider.
This article will explore the benefits of next-day settlements, key factors to consider when choosing a provider, and how to optimise customer contactless experience for business growth.
Understanding next-day settlements
Next-day settlements refer to the process by which funds from credit or debit card transactions are deposited into a merchant’s account within one business day after the transaction takes place. This is a significant improvement from traditional settlement times, which could take two to five business days.
Benefits of next-day settlements for merchants
Improved cash flow
With faster access to funds, merchants can manage their finances more efficiently, pay vendors and suppliers promptly, and invest in new opportunities.
Reduced risk of chargebacks
Next-day settlements allow merchants to address potential disputes more quickly, reducing the likelihood of chargebacks and improving customer satisfaction.
Enhanced competitiveness
By offering fast, secure, and reliable payment processing, merchants can stay ahead of their competitors and attract more customers.
Key factors to consider when choosing a next-day settlement provider
Reliability
A reliable provider should have a proven track record of processing payments accurately and consistently, with minimal downtime or disruptions.
Security
Ensuring the safety of sensitive customer information is critical. Choose a provider with robust security measures in place, such as encryption and tokenisation, to protect your customers’ data.
Cost-effectiveness
Compare the fees and charges associated with different providers to ensure you select one that offers the best value for your business.
Customer support
A provider with responsive and knowledgeable customer support can help you resolve any issues quickly, ensuring a smooth payment experience for your customers.
How to optimise contactless payments for customers
Offer a variety of payment options
Cater to different customer preferences by providing a range of contactless payment methods, such as mobile wallets, wearables, and contactless cards.
Ensure transaction speed
Fast and seamless transactions are crucial for customer satisfaction. Implement a payment processing system that guarantees speedy and efficient contactless payments.
Provide clear transaction details
Customers appreciate transparency in their transactions. Display easy-to-understand details, such as the transaction amount and merchant name, on customer receipts and payment terminals.
Train your staff
Ensure your staff is well-trained in using contactless payment technology and can assist customers with any questions or concerns they may have.
Balance security with efficiency
While optimising the contactless experience is essential, balancing security and convenience is equally important. Implementing additional security measures, such as two-factor authentication or dynamic CVV codes, can help protect your customers’ information without compromising the speed and efficiency of contactless payments.
Benefits of combining contactless and next day settlements
Faster access to funds
By combining contactless payments with next-day settlements, merchants can enjoy quicker access to their funds, allowing them to manage cash flow and financial obligations better.
Reduced processing fees
Some next-day settlement providers may offer lower processing fees for contactless transactions, helping merchants save money and improve their bottom line.
Enhanced customer experience
Contactless payments are known for their speed, convenience, and ease of use. By offering contactless payment options alongside next-day settlements, merchants can provide a seamless payment experience, increasing customer satisfaction and loyalty.
Improved operational efficiency
This combination streamlines the payment process, reducing the time and effort required to manage transactions. It frees up more resources for merchants to focus on other aspects of their business.
Better risk management
Faster access to funds through next-day settlements allows merchants to address potential disputes or chargebacks more quickly, reducing the likelihood of financial losses and maintaining a positive relationship with their customers.
Competitive advantage
By adopting both contactless payment solutions and next-day settlements, merchants can differentiate themselves from competitors and attract more customers seeking convenient and efficient payment options.
How to optimise your contactless payments experience
Trust Payments has developed a point of sale (POS) offering that uniquely allows retailers to speed up the checkout process, engage customers and sell on the go with a single view of products, customers, and inventory. It has won the 2023 Merchant Payment Ecosystem Award for Best-In Store Payment Solution.
With intelligent, fit-for-purpose POS technology, we help global retailers connect and deliver exceptional customer experiences in-store and online – all of which support self-checkouts and wireless contact payments on the move.
Let our experts help you optimise your contactless payments experience!
