Why should stadiums go cashless?
And answering the elephant in the room:
Why is closed loop cashless payments the best fit for stadiums?
Open loop payments work just fine in Businesses where the footfall is spread evenly during Business hours. However, the Stadium eco-system is unique since they receive a tremendous spike in footfall on match days then go dips sharply to zero once the event is over. When the total footfall crosses a certain threshold, the resulting degradation of mobile network eventually places a bottleneck on transactions, thus making open loop payments less reliable.
Such environments require sophisticated payment methods to handle such complexity. This is where a cloud based closed loop cashless system is a stand out performer! The network of these systems operate independently, ie, they do not compete for the same network resources as most of the matchday fans in your venue. Thus ensuring a fast and reliable reliable payments service with minimum service outages.
Let’s take a further look at why a closed loop cashless infrastructure might be a better payments fit for your stadium.
Complete Control of your Payments Infrastructure
A closed loop payments system allows Businesses to be at the forefront of all payments going through their ecosystem. This means that businesses not only get better control of payments, they also get complete control over the customer-brand experience.
The Arena Card cashless payment method at the Allianz Arena stadium, home of FC Bayern Munich, is a great example of a closed loop cashless system where fans can pay for purchases such as matchday tickets, parking, turnstile entry, food & beverage and more. Fans can top up their account online via an app, kiosks or with cash at select counters. Going cashless has resulted in a much better experience for their fans.
Savings due to lower merchant service fees
Closed loop payment systems offer the benefit of lower merchant services fee associated with individual transactions. Merchant Service providers charge Businesses either a flat fee per transaction or a fixed percentage per transaction (or both). Thus every small transaction in an open loop payment infrastructure adds up to a significant amount by the end of the event! With closed loop cashless systems, Stadiums gain considerable savings when allowing their fans to top up larger one time amounts to their accounts to be used during the duration of the event with the option of spending any remaining balance for a future event. This provides significant benefits of saving merchant service fees and at the same time, locking in future revenues today!
70% faster payments resulting in improved throughput at every point of sale
From our personal experience of LoyLap Cashless, closed loop cashless payments are known to be 70% faster than regular chip and pin transactions. It takes a maximum of 4 seconds to successfully complete a transaction with LoyLap Cashless and an additional 5 seconds to print a receipt. Thus it is possible to complete a payment transaction in 10 seconds. This speed would be much slower for chip and pin transactions and even slower for cash transactions. This time saved can be spent in serving more fans, thus improving your bottom line even further.
Rich data and analytics of every customer interaction
Cloud based solutions will give you the ability to save fan information and matchday purchase data. Transform this data into actionable insights that inform you of activity in your stadium, as well as understanding macro insights on sales based on fan demographics. With LoyLap, you can also send offers and promotions directly to your fans in app. These offers are known to be perfect incentives to get your fans off their seats before kick-off, during half-time or after the final whistle and into your commercial kiosks.
LoyLap in partnership with First Data are proud to provide a comprehensive cashless system for stadiums. Whether you wish to simply use our cashless API’s or if you wish to create a new payments infrastructure from the ground up, our clients solutions team can help create a closed loop cashless payments infrastructure for your stadium