We are in a period of transition as we move from cash to cashless. RFID is just one possible route you could take to take your event or venue cashless. A solution that’s been popular at music festivals for years, it’s now the preferred route for an increasing number of industry verticals.
Here’s a quick summary of the advantages of using RFID as a cashless solution. This post is an excerpt from our Cashless Payments Guide. You can download the full guide here for insights into the market trends, the pros and cons of the available solutions and the strategic considerations for going cashless. This is the only guide to going cashless that you’ll ever need.
RFID is short for Radio Frequency Identification. This is possibly (with the exception of tokens), the first evolution of closed loop cashless technology. Most commonly, RFID is used for venues and events through wristbands with an electronic chip and when participants, guests, and fans scan the chip, they pay for their drinks, food and merch immediately.
RFID is a particularly versatile form of cashless technology, in that the chip can be embedded pretty much anywhere. Season tickets, wristbands, lanyard passes – we’ve even seen the technology embedded into someone’s manicure!
If you want to speed up your transactions, then implementing a cashless payment system at your event is unrivaled. Research shows that more and more customers prefer cashless payments, and why not, they’re 63% faster than payment in cash. When it comes to hosting a live event, you can cut down on lines and improve your guest experience through RFID wristbands.
Recent financial security reports highlight that in the UK there were over 1.7 million fraud cases in 2019. Of the total cases, only 23% of cases were about the loss of money. The rest of the cases were related to fraud and theft. RFID wristbands are a safe and secure way to reduce fraud at your events. For instance, if your guests have wristbands, they won’t carry a lot of physical cash. It means thieves and pickpockets won’t have anything to steal. Furthermore, if your business has challenges reconciling takings – RFID also makes the round up at the end of the event faster and more efficient.
If connectivity is an issue – for example on a greenfield site or in an incredibly busy venue, then RFID is worth contemplating.
RFID wristbands are not only helpful for consumers but they are also beneficial for business in terms of revenue generation. RFID events can generate more revenue than regular events that use the cash system for tickets, food, drinks, etc. Research shows that on average, a person makes a 30% higher transaction with a cashless payment system. So, when you host an event where participants have RFID wristbands, they will feel more secure about their money and tend to spend more on impulse.
Even more importantly, with RFID – if your fans are encouraged to preload onto their accounts – you start to get a clear view of anticipated spend and can start to plan and budget accordingly.
At locations where carrying bags, wallets and credit cards is not convenient e.g. beach clubs, extreme sports events or at a location where you want children to have a budget and be empowered to spend safely without having to have adults present – then RFID is a great solution.
When you use an RFID system with the right supplier, you can collect more information on your guests or customers. For instance, you can easily organise data and understand your fans and see the number of people attending the event, the average number of transactions, and the most purchased items on the event. Using this data, you can plan your next event in an organized way that will yield a higher return on investment (ROI).