Contactless payment technology has become an essential tool in the retail industry. They are faster, more secure and provide an enhanced customer experience, all while increasing efficiency and helping cut down queuing time. Tour operators that take bookings in person, with walkups or high volumes of guests, should have contactless card readers everywhere it’s possible to buy a ticket.
The rise of contactless payments accelerated during the pandemic. While the option was already there, the need for hygiene pushed people towards using their cards and phones instead of cash. Everyone found it so quick and easy that they never stopped, and it became a preferred option for many.
According to the European Central Bank, 53.8% of all card payments were contactless across the Euro area in the second half of 2022. Mastercard says that 51% of Americans are using it in some form. In Australia, people have almost completely stopped using cash. Their Reserve Bank found that 95% of all card transactions were contactless in 2022, while three-quarters of all payments were made with card.
What are the benefits for tour operators and their guests?
The removal of friction during payments
Contactless cards reduce friction during payments for both experience operators and consumers. This is both physical and psychological. It is faster — as simple as holding your card or phone to the reader and waiting for the beep. That means the customer is happy and can go about their day sooner, the queue moves quicker, and your staff can process more bookings.
The psychological side comes with the perceived pain someone feels when they pay for something. Handing over cash is a bigger deal for us than paying with card, and paying with contactless feels even easier. This means when people pay with contactless, they are willing to spend more than they would with cash.
Increased security and peace of mind
For both consumers and tour operators, contactless payments increase security. They reduce the risk of fraud and unwanted access, and are more secure than chip and pin, or a signature, as still occurs in the United States. For example, some banks will check a transaction if the customer’s phone is not in the same location and will provide a virtual card to use with their mobile wallet that can be cancelled easily. Because of this, operators are less likely to have to deal with claims and financial losses.
Increase your revenue and profitability
As everything is so much more efficient and simpler, your guests are more satisfied and are willing to spend more. Tour operators should see both revenue and profitability increase after offering contactless payments. People will be more likely to become repeat customers because of the ease of the transaction.
Electronic point-of-sale devices now provide retailers with more information about their sales than was possible before. Tour operators should be using a booking system, such as Palisis, designed to provide the exact information you need about your guests and their bookings and allow you to dig into the details of each booking as required.
Buying contactless point-of-sale (POS) devices as small as a handheld calculator or converting your phone into one if it has NFC technology is possible. There are also the standard ones that can be found in many shops. Mobile, desktop and kiosk devices are available depending on your use case. You will need to check that the devices are PCI-compliant.
Tour operators have slightly different needs than retail. Some booking systems, such as Palisis, have worked with POS manufacturers to develop programs that run on specialised touchscreen devices that meet your needs.
Mobile devices with all your products are loaded and merchandised so that your street sellers can walk a potential customer through the tour if required and offer them options and upgrades. They can show pictures to inspire the customer and come with real-time updates to your booking system and GPS tracking. These will also validate tickets.
A desktop POS can be used in the office. With this, you can show off your trips in higher resolution as the guests make their decisions. Kiosks are larger again and allow full self-service for the customer. These are particularly useful for sales offices with high volumes of customers.
As each device is connected to your booking system, you will be able to see real-time updates on the performance of your salespeople. This can help you analyse and spot any opportunities you want to take advantage of or problems you might have. For example, you might spot a street seller suddenly selling twice as much and decide to despatch another to the same location.