From barter systems to the advanced contactless payment systems of today, the human race has made significant strides in making life more convenient, safe, and high-quality. In this journey, IoT-enabled solutions have been more than just a driving force, they have been the catalyst, playing a pivotal role in the entire transformation of the retail industry, and shaping the way we shop and do business.

Consider the scenario of an elderly couple in an emergency needing a life-saving drug but unable to visit a medicine store and lacking sufficient cash at home. Under these circumstances, if the drug is home delivered and they can easily use a mobile wallet to pay the bills, they are reassured of their safety and security. This is the reliability of mobile wallet transactions, ensuring the safety and security of the elderly couple and relieving them of any undue stress. This reassurance is what contactless retail solutions can bring to a retailer’s operations, empowering them to make operations more efficient and streamlined.

This empowerment is a testament to the transformative power of advanced technology in the retail sector, inspiring a new era of retail operations.

In this article, let’s explore the world of contactless retail solutions, focusing on the rise of mobile payments, curbside pickup, and touchless checkout systems. The write-up delves into how these technologies are revolutionizing the retail industry, enhancing customer experience, and ensuring safety in the ‘new normal’—contactless retail and contactless payment systems. This is a testament to the transformative power of advanced technology in the retail sector, inspiring a new era of retail operations. This transformative power is a beacon of hope for the future of retail, promising a more efficient and customer-centric industry.

Rise of Contactless Retail Solutions

COVID-19 and lockdown transformed the commercial landscape, and brick-and-mortar stores were the most prominent casualties. Customers preferred a touchless shopping experience and contactless retailing. A surge in eCommerce threatened the traditional retailing format, as there was a shift towards it. Adapting the New Normal was the only way to combat the situation and stay in business. It was also a safer option for stores opening post-pandemic; the hybrid mode boosted businesses. Digital retail solutions meet customers’ demands and expectations easily and faster. More than that, it ensured safety, minimized risk, and promoted contactless dealings, which benefited the staff and the customers.

Though businesses have opened and footfalls in brick-and-mortar stores have also escalated, contactless retailing has remained due to its low-contact engagement, speed of transactions, and faster mode of operations. The future is contactless and will benefit businesses and customers equally. Contactless retail solutions have different growth phases; the commercial arena is witnessing biometric authentication in retailing. Simply by authorizing biometric features such as face or palm, customers can enjoy seamless online ordering or have a touchless shopping experience. Let’s get an overview of the growth phases of contactless retailing together.

• Touchless Checkout Systems—Initiated during COVID-19, when there was a fear of spreading the virus, staff and customers wanted a system with less interaction. Cloud-based POS systems, connected to the internet, support remote inventory management and payment processing across all platforms. Through kiosks or BOPIS (Buy Online, Pick Up in Store), waiting in queues for payment is decimated. The enhanced shopping experience continued into post-pandemic days and is improving every day.
• Curbside Pickup—Another advantage of cloud-based POS systems and remote customer service is a rise in curbside pickup. In generic terms, curbside pickup implies customers order online or by phone and meet a retailer staff member at the curb or near the store to pick up the order with minimum contact and time spent. It is gaining popularity as it minimizes the time required for order fulfillment.
• Mobile Payments—RFID technology integration in supply chain management allows tracking and tracing in real-time. It powers contactless payment options such as mobile wallet transactions and tap-to-pay. When a customer makes a purchase, radio waves instantly share details about the mode of payment, which can be a bank account, mobile wallet, or contactless card, with the merchant’s payment system reader. The convenience of going cashless encourages customers to opt for contactless shopping.
• eCommerce—This changed the complete landscape of retailing; eCommerce retailers Amazon and Walmart take orders online and provide the convenience of home delivery. Recently, drones and EVs have been used for sustainable delivery.
• AI-driven Retail Experiences—To enrich the customer experience, eCommerce sites allow augmented reality shopping. This enhances the touchless shopping experience. It promotes the concept of no need to try out clothes or the look of the furniture physically. Instead, AR and VR (virtual reality) provide customers with real-life experiences; customers can virtually try out clothes and decide on the look of the new outfit before placing the order. This saves time, reduces cost, and makes it convenient for the customers.
• Sensor-based Shopping Carts—Beacon technology implementation and sensor-based shopping carts are a technological revolution in retailing. The benefits of intelligent shopping carts benefit customers and retailers. Together, they enhance the shopping experience by sending personalized recommendations on mobile or in feeds. They capture customer interests to improve inventory management, allow accurate data analysis, save time, support sustainability, and reduce costs.

Benefits to Customers and Retailers

Contactless retailing, which got a real boost during the lockdown and pandemic, has become the future of retailing. Seamless integration of technology has benefitted both customers and retailers. Customers view it as—

• Timesaving,
• Convenient,
• No long waits in the queue
• Secure shopping with no cash to carry, and
• Quick payment options.

Whereas retailers have got—

• Competitive edge,
• Can add value to customer experience through AI-driven retail experiences,
• Improved customer retention,
• Reduced operational costs,
• Efficient, and
• Personalized shopping experience for customers.