As a business owner, you’ve likely heard of payWave – you’ve probably even used it yourself to grab a quick coffee or pay for groceries without the hassle of entering a PIN. But what exactly is payWave, how does it work, and what does it mean for your business?
In this handy guide, our experts at Eftpos Now break it all down in an easy-to-understand way, covering everything from the basics of payWave to the future of contactless payments in New Zealand.
What Is payWave?
payWave is a contactless payment technology that lets customers pay for goods and services by simply tapping their card, smartphone, or smartwatch on a payment terminal. Launched in New Zealand in 2011, it’s a simple way to pay – with no need to insert your card or enter a PIN for transactions under a certain limit (currently $200 in New Zealand). This makes payWave incredibly fast and convenient for both customers and businesses.
payWave is often used as a generic term, but it’s technically Visa’s brand for contactless payment technology. Mastercard offers a similar service called PayPass, and other providers like American Express and mobile wallets (such as Apple Pay and Google Pay) also support contactless payments.
How Does payWave Work?
The magic of payWave lies in Near Field Communication (NFC) technology. NFC is a type of wireless communication that allows data to be exchanged between two devices when they are close together – usually within 4 cm.
Here’s how it works:
1. Tap to Pay: When a customer taps their payWave-enabled card or device on your EFTPOS terminal, the NFC chip in the card/device communicates with the terminal.
2. Data Exchange: The terminal reads encrypted payment data from the card/device.
3. Transaction Approval: The terminal sends the payment information to the customer’s bank for approval. This happens in real time, often within seconds.
4. Payment Confirmed: Once approved, the terminal displays a confirmation, and the transaction is complete.
It’s that simple!
Is payWave Safe?
One of the most common questions business owners and consumers alike have about payWave is its safety. The good news is that payWave is incredibly secure.
Here’s why:
Encryption: Payment data is encrypted, making it difficult for hackers to intercept or misuse this data.
Transaction Limits: For added security, transactions above $200 currently require a PIN.
Unique Transaction Codes: Each payWave transaction generates a one-time code, ensuring the same details can’t be used twice.
No Data Storage: Payment terminals don’t store sensitive customer data.
While no payment method is 100% foolproof, payWave is considered safer than traditional magnetic stripe transactions and on par with chip-and-PIN payments.
What Are the Fees for payWave?
As a business owner, understanding the costs associated with payWave is essential. While payWave offers undeniable convenience, it does come with some fees.
Merchant Service Fees (MSFs)
These are the fees your payment provider charges for processing card transactions. MSFs for payWave are typically slightly higher than for EFTPOS transactions that require a PIN.
Interchange Fees
Part of the MSF goes to the customer’s bank as what’s called an interchange fee. This fee helps cover the cost of offering the convenience and security of payWave.
Terminal Rental Costs
If you’re upgrading to a contactless-enabled EFTPOS terminal, there may be additional rental costs.
While these fees can add up, many businesses find that the increased sales and faster checkout times more than make up for the cost. Customers are more likely to make impulse purchases when payment is quick and hassle-free, so the convenience factor can lead to higher revenue.
How Can My Business Accept Contactless Payments?
If you’re ready to offer payWave to your customers, you’ll need an EFTPOS terminal that supports contactless payments. Here’s a step-by-step guide to getting started:
Assess Your Needs
Think about your business type, transaction volume, and customer preferences. For example, retail and hospitality businesses often benefit the most from the speed and convenience of payWave.
Choose the Right Terminal
Not all EFTPOS terminals are created equal. Work with a payment solutions provider like Eftpos Now to choose a terminal that supports NFC technology and integrates seamlessly with your existing systems.
Set Up Contactless Features
Your payment provider will help you enable contactless payments on your terminal and make sure everything is compliant with security standards.
Train Your Staff
Make sure your team understands how to process payWave transactions and address common customer questions relating to contactless payments.
Promote payWave
Let customers know you accept payWave by displaying the logo at your point of sale – people love the convenience and will appreciate the option.
The Future of Contactless Payments in New Zealand
Contactless payments are no longer a luxury – they’re an expectation. In fact, New Zealanders are among the world’s fastest adopters of payWave technology.
Here are some trends to watch:
Increased Limits
As more people embrace payWave, transaction limits may continue to rise, reducing the need for PIN entry even further.
Mobile Wallet Adoption
More consumers are using digital wallets like Apple Pay, Google Pay, and Samsung Pay. These options offer the same convenience as payWave with additional features like loyalty card integration.
Wearable Payments
Smartwatches and fitness trackers with contactless payment capabilities are growing in popularity, offering even more ways for customers to pay.
Biometric Authentication
Future advancements may include fingerprint or facial recognition technology, adding an extra layer of security to contactless payments.
EFTPOS Innovation
EFTPOS providers in New Zealand are continuously improving their offerings to meet consumer demands and reduce transaction costs for businesses.
By embracing these trends and staying ahead of the curve, your business can continue to provide the seamless, modern payment experience customers expect.
Ready to Take the Leap?
payWave is more than just a convenient way to pay – it’s a game-changer for businesses in New Zealand. By offering payWave, you’ll not only speed up your checkout process but also provide a customer-friendly payment option that can boost your bottom line.
If you’re not already accepting payWave, now’s the perfect time to make the switch. With the right EFTPOS solution, a clear understanding of the fees, and a forward-thinking approach, your business can thrive in the contactless era.
Ready to get started? Get in touch with one of our EFTPOS specialists today to explore your options and take your business to the next level.
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