With 38 per cent of all payments being done using contactless methods in 2023, according to UK Finance, the need for SMEs to embrace the technology has never been greater.
Additionally, research by Epsilon has found 80 per cent of consumers say that easy payments are a defining factor in delivering a strong customer experience.
Having identified taking payments as a major pain point for small businesses, BT Group’s digital and startup incubation arm, Etc, partnered with financial technology platform Adyen earlier this year to develop a solution that enables them to accept in-person contactless payments both easily and securely.
The user can simply download the BT Tap to Pay app on their phone, sign up for it, log in and add their details before they are ready to take payments, with the money being transferred to their account in two business days. The app is available on both iPhone and Android and there are no card readers or additional hardware needed, which can be critical for SMEs that have to carry around their equipment and wares, such as tradespeople.
There’s also no contract or monthly fees. Only a 1.4 per cent transaction fee on payments taken.
“With almost everyone now carrying a mobile phone, the preference for contactless payments is definitely growing,” said John Gutch, senior product director for fintech at Etc. “Ease of payment is, therefore, critical for a strong customer experience.“We have responded directly to that shift in demand with the development of the app. The aim is to empower small businesses with a faster and more convenient way of taking payments wherever they are.”
Gutch said that Etc wanted to take the burden off and simplify the payment process for small business owners, many of whom have to fulfil multiple roles, by providing a method that is as easy as possible to use and is always connected to the EE network to avoid any connection issues. Because they can take payment in person, he said that it also eliminates the need to chase payments.
When they aren’t present, Gutch said businesses can still securely take payment through a pay by link that has been built into the app and they are informed when the transaction has gone through. For example, if they need to charge a deposit or for ordering materials.
Users can also view their payment history and make refunds.
As well as ease of use, Gutch said that the app has all of the relevant security protocols built in to prevent fraud and to protect SME users and their customers. It also keep customer data private and secure.
“Since the rollout, we have been learning all the time,” said Gutch. “By speaking with our customers on a daily basis, we are able to understand the challenges that they face and implement the improvements needed to help them overcome them.”As adoption of contactless payment only continues to grow exponentially, driven by the rising use of mobile and digital wallets, so technology needs to keep evolving to meet the demand.