Cashless payments occur when a customer uses a digital or electronic payment method instead of direct physical cash. Cashless payment transactions rely on digital POS systems and infrastructure rather than direct, manual cash handling between customers and staff members.
Increasingly common in online and face-to-face transactions, digital payments remain in high demand across most industries, including e-commerce, hospitality, and retail. Today’s consumers and their need for fast, convenient transactions are driving this demand. Businesses are also embracing these payments as they drive operational efficiency and customer satisfaction, and loyalty.
Common Types of Cashless Payments
Card-Based Payments
Debit cards and credit card payments remain the most popular cashless payment methods worldwide. They are commonly accepted in online stores and brick-and-mortar businesses, contributing to their popularity and widespread use.
In customer-facing establishments, consumers can make credit and debit card payments at physical point-of-sale terminals through swipe, chip, or tap-to-pay transactions. Even cash-only customers can benefit from card-based payments. When businesses offer Cash-to-Card® Kiosks on-site, customers can quickly and securely convert their cash into a prepaid credit card they can use on-site, online, and anywhere major credit cards are accepted.
Mobile Wallet Payments
Mobile wallet payments are popular for their security and ease of use. Instead of carrying a physical card, customers can store their card details digitally on any smart device, such as a cell phone or in an app for app-based purchases.
For in-person purchases, they can simply enable tap-to-pay transactions on their smart device and pay seamlessly via contactless technology.
Online Banking and Transfers
Electronic bank transfers are a go-to choice for major purchases, account-to-account transactions, and bill payments. They’re secure and easily traceable, and most commonly initiated through online banking platforms or payment portals for added security.
Contactless and NFC Payments
Contactless payments keep the queues moving quickly. Customers can simply tap their card to pay, rather than inserting it into a terminal and keying in their PIN.
Near Field Communication (NFC) technology or similar short-range communication tech enables these fast and secure payment transactions.
QR Code and Peer-to-Peer Payments
QR-code-based payments allow customers to quickly and securely initiate a payment transaction by simply scanning the QR code with their smart device.
Likewise, peer-to-peer payment apps, such as PayPal, Venmo, and Zelle, are easy to use, providing individuals with a secure method to send or receive payments. These digital payment solutions expedite financial transactions without requiring staff assistance, making them convenient for customers and businesses.