- 2 min reading
Using contactless payment options can reduce anxiety associated with shopping in-store during the COVID-19 outbreak. Unlike before, customers now wish to go about their daily lives with minimal contact with another surface. One of the main goals is to avoid cash transactions at all costs. Some people are paying via their smartwatches or tap-to-pay, and others want to use an app-based digital account whenever possible.
There is an obvious demand for cashless payment and it’s only going to increase as more contactless solutions become available. Fuel retail businesses have undergone a digital transformation over the years. Cashless fuel payments have begun to dominate fuel stations, which once had only cash and card as available payment methods. The two commonly used modes of contactless mobile payments are:
- Physically tapping the phone to the pump
- Paying with a mobile app
With tap-to-pay, a mobile phone with NFC technology becomes contactless, and the customer only taps it to the reader at the pump. The second option also involves minimal difficulty to use but provides even more value for customers.
Implementing mobile payments lets your customers pay and save in one easy step by eliminating the need to carry multiple cards and reducing the number of prompts they must enter at the pump. The success of connected digital accounts (loyalty program mobile app with payment functionality) does rely on repeat and loyal customers – because the installation of the app and adding payment methods is an effort. That is the reason you, as a loyalty program operator, should encourage them and incentivize them by integrating special offers and offering bonus loyalty points.
We all know that fuel station brands have been driving customer loyalty for decades. It’s a competitive environment, and this means that customer retention has always been critical. The connected digital account is the ideal add-on to the loyalty mobile app. If communicated effectively, the benefits will encourage more customers to switch from cash payments to mobile payments, and from non-members to members. All you must do is deliver a convenient and secure solution. And, thanks to the mobile payment in the application, you can increase overall customer loyalty. Your consumer has funds in the account, so he uses the station more often because it’s so easy for him. You give your customer the added convenience of a super seamless payment.
Apps allow customers to select the gas pump number and choose a payment method without getting out of the car. The only physical interaction they need to have with the pump is choosing a fuel grade and using the nozzle. If the station has employees to pump the fuel, these elements are skipped.
Four reasons why mobile-connected digital accounts are getting so popular:
- Speed: faster in and out of fuel station; significantly fewer prompts
- Convenience: no need to carry multiple cards
- Added-value: a loyalty program may promote this way of payment with additional points or benefits
- Security: supported by trusted financial service providers
By introducing the mobile app, which enables customers to pay quickly, efficiently, and securely and without going to the cash register, fuel stations show that they are committed to implementing innovation.
You may also like:
Loyalty. Is mobile the answer?