During the global pandemic, most businesses are turning to cashless payments to minimize physical contact. Despite the popularity of contactless credit cards and mobile wallet applications, many other cashless payment options have emerged in recent years.
If your business is looking to switch to cashless payments, here are some options to consider:
- Banking Cards
Across the globe, debit and credit cards are among the most widely used cashless payment methods. A banking card comes with many benefits, including secure payments and convenience.
The fact that banking cards can also be used to make other types of digital payments is one of their greatest assets. Mobile wallets and digital payment apps, for example, can store a user’s credit card information to facilitate cashless payments.
Additionally, banking cards can also be used for online purchases, portable point-of-sale machines, online transactions, etc.
- Radio-Frequency Identification (RFID)
RFID tags provide the means to track payments and bank information using radio signals. With the help of mobile phones and RFID system technologies, RFID tags can be scanned to identify wristbands, watches, or badges.
Business events or organizations that offer services can also use RFID tags to keep track of customers and act as a digital wallet for them.
- Unstructured Supplementary Service Data (USSD)
Other real-time cashless payment methods requiring a mobile network include USSD services. Customers can use this technology to make payments to chosen recipients by dialling a USSD code on an interactive menu provided by the business (most likely via a mobile phone).
For USSD codes to work, a client’s mobile network must be linked to their bank account, and for clients to make successful payments, their bank accounts must be linked to their mobile numbers.
- Quick Response (QR) Codes
QR codes are two-dimensional patterns of black squares. They are a viable alternative to cashless payments if both businesses and clients are equipped with advanced imaging and camera technologies.
Through QR codes, users can make payments by scanning a merchant’s QR code, which can be done through banking apps or third-party payment applications.
Cashless transactions may seem appealing, but the technology required to support them is costly. Make sure you know which cashless payment methods will be most accommodating to your clients’ needs and will fit into your business operations.
- Electronic Clearance Service (ECS)
Payments made with Electronic Clearing Service can include bulk payments, equated monthly instalments, utility payment offs, dividend interest payments, and salary payments. In addition to credit services, ECS can also be used for debit.
For periodic credits and debits to be initiated, authorization from the bank is required. ECS is a safe method as you can specify maximum debit sums, validity periods, and why a transaction is made.
With the advent of cutting-edge technology and the continuous improvement of existing technologies, we may soon see faster, more secure, and more transparent cashless payments. However, it is only time that will tell when a cashless society truly becomes a reality.