Contactless Payments

Have you seen the ads? Tap n Go, PayPass, and payWave with over a million contactless cards on issue in New Zealand now is the time to speed up your transactions. All our EFTPOS terminals are equipped with a contactless reader, so sign up today to get your very own EFTPOS terminal.  

What are contactless payments?

Contactless or Near Field Communication (NFC) technology is quickly becoming the preferred mechanism for making and accepting payments in overseas markets. It’s already being used extensively and successfully throughout Asia and America at sporting events, fast food restaurants, bars, cafes, taxis and convenience stores to significantly speed up payments and is expanding rapidly in Australia, the UK and Europe.

All the main NZ banks’ cards now feature contactless capability, utilising RFID (Radio Frequency Identification) technology within an embedded chip and antenna within the card. As a result the number of terminals in the market on which these cards can be used is rapidly expanding. 

Paymark, Vodafone New Zealand, 2degrees and Spark New Zealand have announced plans to bring the future of mobile payment services to New Zealand. This will allow New Zealanders to make secure payments, collect loyalty points and use public transport with their mobile phones.

At Smartpay, we’re committed to contactless payments and understand it’s part of the future for payments. All our terminals come with tap and go technology and are ready to take chip enabled cards 

Download the contactless brochure here.

The benefit of contactless payments to Customers

  • Fast transaction times - move customers more quickly through the payment process by reducing waiting times.
  • ​Increased customer spending - increased frequency of purchases, and increased customer loyalty that leads to increased revenues.
  • Improved efficiency - reduced cash handling, improved payment terminal reliability, and streamlined payment processes improve operational efficiency and reduce operating costs.
  • Increased security - the card or device remains in the possession of the customer, which provides a more secure means for processing.
  • General convenience - customer queues are reduced as transaction times are speedier leading to better in-store customer experience.
  • Doesn't need to be a card – phones and other devices such as Key Fobs are contactless capable.
  • Globally inter-operable solution
  • Contactless acceptance supports mobile NFC

Frequently Asked Questions

How can retailers make contactless payment work for them?
For it to work, it must address the individual retailer’s need i.e benefits of speed of transaction (Bars or places with lunch time queues), or the card holder keeping hold of their card (Doctors for example). Research has shown the average ticket size when using the technology is around $20, so the system is ideal for companies such as coffee stores and bakeries where fast and low value transactions are common.

What is the limit for contactless transactions?
There is no limit for contactless transactions however transactions over $80 and the customer will be prompted for PIN (or signature). $80 and under and the transaction will be processed instantly in New Zealand! 

How long before contactless payment options are the norm?
Self-service checkouts are where the real potential comes in and technology will be adopted early by the grocery stores. It is however all reliant on the issuing banks to ensure there are cards made available for consumers to utilise the technology. The younger generation will adopt contactless earlier than most due to their familiarity with technology.

How much quicker is it to use contactless technology than normal chip and pin?
The average contactless transaction is 0.5 seconds, compared to three to ten seconds for chip and PIN. Using cash and having to wait for change is also a slower process than contactless. Using the new technology effectively takes the payment obstacle out of the critical process of getting people through tills at peak periods during the day, such as early mornings and lunchtimes.

Why should retailers consider contactless payment technology if they haven’t done so already?
Research has shown that using contactless payment technology can typically result in five to 15 per cent higher ticket values and, due to the speed of the system, those who are usually self-conscious about using their credit or debit cards in busy queues have another option at their disposal. As well as the speed of service, it reduces the amount of cash that needs to be handled.

How can I be sure that only one payment is taken from a Contactless card?
Contactless terminals are programmed so that they only take one payment from one card for any one transaction. A second payment can only be made if the card is removed from the field and a second transaction initiated by the merchant by entering the amount to be paid on the terminal.
When a transaction is complete the lights on the reader will illuminate and may be accompanied by a short beep.
The transaction will be rejected if the reader senses more than one card being presented at one time.

Does a cardholder have to use Contactless; can they still use chip & PIN?
As long as the retailer accepts chip and PIN card payments, the cardholder will still have the option of paying by chip and PIN rather than contactless.

In the future there may be a limited number of environments where customers will only be able to pay by card using the contactless functionality – when using transport facilities for example.

Will contactless payments be treated as a cash transaction on a credit card?
No, these transactions will be treated as any other purchases on your credit card even if using a Visa or MasterCard Debit.  This means from a retail perspective there will be merchant service fees attached to these transactions

What about Fraud?
Contactless Payments are safe and have minimal risk for customers and retailers.

To prevent fraud and protect the cardholder, the owner/customer may have to enter their four-digit PIN code after a certain number of contactless transactions.  This is to prove the customer is still the card owner and limit the damaged caused by lost or stolen cards.

There is also a periodic check where the card owner will be forced to enter a PIN code during a Contactless transaction.  In genuine situations, the cost of fraudulent transactions will not be passed back to the retailer or the cardholder.

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