The Logic Group Launches a New Contactless Payments Solution
The Logic Group launches a new Contactless Payments Solution designed to enable retailers to introduce contactless card payment solutions that offer more convenience, security and speed.
Faced with ever increasing cash handling costs and with estimated 20 billion cash transactions in the UK for less than £10, the case for a more convenient faster and more secure payment method is clearly compelling.
To date, major retailers wanting to offer contactless acceptance, have had, in the main, to consider deploying bank-owned terminals, which require double entry on the part of the retailer. While an effective use of the core technology, such systems have not yet offered retailers the opportunity to experience the true benefits of faster transactions, reduced cash handling costs and increased consumer footfall and basket spend.
Justin Schuil-Brewer, Product Marketing Manager for The Logic Group, believes the availability of an easy to implement, integrated Contactless Payments Solution will help to accelerate rapid uptake in tier 1 and tier 2 retailers where a significant number of sub £10 basket size sales occur.
"Retailers are constantly striving to accelerate throughput and the speed of the payment process within the customer experience since they recognise the dramatic impact it can have on their customer interaction. Systems to date have also provided little insight into the significant return on investment contactless payment solutions can deliver in terms of increased brand loyalty, reduced cash management and greater consumer purchase insight. The Logic Group's Contactless Payment Solution offers retailers an integrated system that can realise these returns."
APACS estimates over five million contactless cards will have been issued by the end of 2008, and they will be accepted in at least 100,000 merchants across the country. Two thirds of the £23 billion cash transactions made in the past year were for less than £5. Over the last five years cash payments have seen a continued decline, falling 14%.
As fully-integrated contactless payment systems roll out in earnest over the coming months, participating retailers should also expect to see a rise in the average basket size particularly for convenience items, as consumers are no longer restricted by the amount of small change in their pockets.
The accelerated uptake of contactless payment systems through The Logic Group can also be seen as a natural step on the road to the future introduction of mobile payments advises Justin Schuil-Brewer.
There is also potential to create new loyalty-centric business models by leveraging the advantages of contactless payment over the anonymity of cash which could offer retailers further benefits.
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