There are multiple payment options available for businesses, which can create confusion and unnecessary costs. In this blog post we will provide rationale behind some of the available payment options, and why searching for a more innovative solution may be worthwhile. For example how to accept card payments without a traditional POS terminal. Stay tuned for some exciting news on this topic.

Cash or Card?

Fortunately, this is an issue that is no longer an issue! Paying with a card has become second nature by consumers in almost every location, from the corner store to a high-class restaurant. Although it took some time for card payments to become widely accepted in Hungary, many businesses have understood that offering a cashless option resolves many challenges involving physical cash. This includes reduction of theft from staff and both saving time and cost from cash handling services. Although merchants using online cash registers have been obliged to provide electronic payment everywhere since January 2021, some customers remain reluctant to pay with a card and some businesses remain largely cash payment. For example, a visit to the hairdresser, beautician or mechanic may still require cash payment and customers need to prepare accordingly beforehand. Needing to withdraw cash from an ATM to pay can be viewed as inconvenient especially by more tech-savvy consumers.

Innovative Payment Solutions

In our article, we will provide some logic why a business may choose to introduce innovative payment solutions;

1. Not as expensive as you think

Perhaps the most common objection made by businesses to card payments is that the initial set up consumes a considerable amount of money (POS terminal purchase etc). Card payment vendors have introduced low cost options to allow businesses to quickly accept card payments.

2. Card payments are not complicated

It is widely acknowledged that during the early years the set up of a card payment system for a business was complicated. Early POS terminals were troublesome, expensive and frequently malfunctioned. Thanks to technological advances, cashless payment systems are simple to implement and don’t require complicated POS terminals. The ability to receive both card and mobile payments has exponentially increased, and their implementation is significantly less expensive through mobile payment and both mini/full sized POS terminals.

3. Safe

While many are mistrustful of mobile payments, it can be a reassuring argument for them that not only has technology evolved tremendously but the security for handling them has increased too

4. User friendly

There are numerous consumers who no longer carry cash, relying upon only their credit card or mobile (phone) for payment. The numbers of this style of consumer is increasing daily, and it is expected to become the dominant method of payment. For these customers, even a simple card payment option can be appealing. For example a card/mobile only consumer will typically chose a store where they can pay with their preferred method. As mentioned before, consumers are discouraged by cash only businesses as this represents and inconvenience to them. Offering a cashless payment system will appeal to a greater range of consumers.

5. Hygienic

Due to the pandemic, the importance of hygiene is now paramount, therefore contactless solutions are an advantage when paying. Customers are encouraged to pay with card, as this reduces the potential cash-based transmission of viruses. Although the intensity of the pandemic has now decreased significantly in Hungary, the safety and hygiene provided by contactless payment has remained an important consideration for paying customers. Additionally the buying trends of the consumer have been forever altered to prefer card or cashless payment.

6. Brand Reinforcement

Although cash only businesses are decreasing, offering innovative payment solutions is viewed positively by consumers. In particular the mobile generation are particularly attracted to ‘trendy’ payment methods. For example, businesses who initially offered smart watch payments received a rush of transactions by consumers wanting to try it out. These early adopters were well regarding within the community, building brand reinforcement that lasts long beyond the initial interest.

Festipay and Cellum will soon reveal a revolutionary payment system!

A low-cost payment solution for freelance entrepreneurs, independent consultants, and professionals on the go will be revealed in our next blog post…

Budapest: a destination with a difference

Two things that make Budapest a destination with a difference is Sziget Festival and the thermal baths. Festipay is proudly present in all of these tourist attractions, providing cashless payment solutions.
You find pretty much info about Sziget Festival on the internet, and we also have written quite a few blog posts about the region’s largest summer festival, but what about the thermal baths? Budapest is officially known as the City of Baths. Let us take you for a virtual walk through the centuries!

Thermal Baths of Budapest – medieval heritage

Not many visitors know that some of the beautiful thermal spas of Budapest, and the traditions that come with it are the heritage of Hungary’s 150 years of Ottoman Turkish occupation. After hundreds of years of decay, the Turkish baths in Hungary’s capital have found their rightful place on the Unesco World Heritage list of outstanding natural and man-made treasures. Buda, with its remaining architecture and thermal baths offers a flashback to medieval times. Situated from south to north along the Danube the Ottoman baths are the Rudas, Rác, Király, Lukács and Császár baths. Today we’ll introduce Rudas, Király and Lukács baths to our readers.
Turkish thermal baths in Budapest are amazing oriental monuments with modern day facilities. The medieval Turkish thermal baths of Budapest are not steam baths as in modern day Turkey, but historical ones with a central octogonal shaped pool extended with other baths.

Rudas: its medieval cupola is the largest in Europe

The first thermal baths on the site of the Rudas date from the late 14th century. The exact date isn’t known, although renovation and expansion work was carried out in 1566. The new building was constructed by the Pasha of Buda in the 16th century and his plaque remains in the main chamber. The original cupola, vaulted corridor and main octagonal pool remain, although heavily restored. There are several reasons to believe that this work might have been carried out by Sinan. The Greek architect and contemporary of Michelangelo was a maths genius. He revolutionized Muslim architecture and created incredible, huge domes. The size of the Rudas cupola is unique. It is the largest in Europe. Bombing during the Second World War destroyed the upper two stories of the bath.

Rudas has been restored in 2012. What makes it stand out is definitely its 16th century core, and the fact that the thermal baths have a special very late night opening hours every Friday and Saturday. Also, this is the only thermal bath in Budapest, which has men only and women only days on weekdays. It has six steam pools and a swimming pool.

Király: the oldest, still functioning Turkish bath in Budapest

Király Bath is the oldest bath in Budapest, located in a small, beautiful building. Prior to Sinan, the architect of Rudas, domes or cupolas were placed on top of the outer walls of a building or on broad, squat pillars. Sinan introduced large, graceful cupolas that rested on narrow, towering pillars, but the Király reflects the former style. It has retained more of its original Turkish character than any of the other Buda baths. The Király is also unique because it does not have its own well. Water for the Király is carried via a larchwood conduit system from the Lukács wells. Király has a characteristic dim light, as the pool gets its light from the 16th century dome holes covered in glasses. We especially recommend this bath for the fans of medieval history and those seeking for hidden gems in Budapest.
The Rudas and Király are both national monuments.

Lukács Bath: since the 12th century

The history of Lukacs Bath reveals that the geothermal hot spring waters coming from deep underground have been used by the St John’s knights in the 12th century, later by the Turkish dignitaries and soldiers in the 16th century. In the 1880s the bath has been completely redesigned and rebuilt as a spa hotel  and wellness center. In 1946 the former medieval Veli Bej Bath (Császár Bath) was united with Lukács thermal baths. In the 1970s, the bath has officially become a water hospital to treat locomotive diseases and prescribed as physiotherapy. In 1999, the open-air swimming pools were modernized and is making use of more modern technology and equipment such as whirlpool, geysers, effervescent bed, modern water-filtering and circulation devices.

Festipay is the official cashless payment service provider of Budapest spas and thermal baths. Festipay cards uploaded at the cashier desks can be used to purchase any products at the area of the bath. The card works with a touchless technology, it is waterproof and you can fix it to your proxy watch or hang it around your neck during bathing.

CONTACTLESS payments are set to increase and becoming a more preferred payment method in countries where these methods were not very popular earlier, things have changed amid the spread of COVID-19. Contactless and digital payment methods require less physical interaction and are more secure.

US buyers reconsidering their payment methods

Americans have begun to reconsider the cash they handle every day. Among those other measures they’re taking to stay safe, people in the US could also finally be ready to embrace digital wallets and contactless payments, after years of reluctance.

Contactless technology allows customers to pay by tapping their cards to a point-of-sale terminal. The cards are a faster alternative to chip-and-PIN payments, and require less physical interaction.“Using a credit card’s contactless capability may help give consumers more peace of mind,” said Jill Gonzalez, an analyst at WalletHub. More consumers may also opt for similar “tap and go” transactions through digital wallets like Apple Pay or Google Pay, to avoid handling cash and credit cards during the outbreak. In addition, these methods are considered much more secure.

Ireland: a new limit

In Ireland, as a study from last year shows, 57% of those surveyed in Ireland revealed that they favoured the use of cash, in the form of notes and coins, over credit/debit cards or digital payment methods. But now, amid the pandemic crisis, cashless payments are getting more popular. According to The Irish Sun, limits have been increased from €30 to €50 during Ireland’s corona virus crisis. Finance Minister Paschal Donohoe announced at a press conference on Wednesday afternoon that people will be able to tap up to €50 instead of €30.

As it was featured in Festipay’s news earlier, WHO pushes for contactless payments instead of cash to slow Covid-19. A spokesperson for the World Health Organization said in early March that contactless cards could ‘reduce the risk of transmission’. Notes change hands thousands of times during circulation and can pick up all manner of germs as they’re passed around.

We are pleased to inform everyone that the tender number EXP2020-NEP-000263 submitted by Festipay Zrt. received non-reimbursable support as follows:

Amount of support requested by the applicant: HUF 49,897,590
Amount of support granted: HUF 49,897,590
Support intensity or amount: 60,00%

The main goal of Festipay Zrt. is to become a market leader service provider in Romania and to appear in those countries, which own lower or higher penetration than the European average within the digital payment methods (which means: both the number and the space of the customers are before growth).

The target of the current project is Romania, Cluj-Napoca, but countries targeted by marketing are planned to be Greece, Turkey and Serbia as well.

The company can ensure state-of-the art digital trading systems, non-cash based payment technologies, automatic entry and guest-guidance systems for its customers.

The planned result of the project is that Festipay Zrt. can appear with competitive services on the new markets, with high added vale technological service quality it can enhance the non-cash based payments methods and can assist the Hungarian economic growth, while the company can expand its know-how by getting to know the new markets characteristics

Thank you, HEPA!

The cruise ship segment has enjoyed steady growth for many years, up until the COVID19 global pandemic prevented all but essential travel. The size of cruise ships has also grown significantly, with the largest vessel (Symphony of the Seas) over 300 meters long and handling 6,680 guests plus a large amount of crew members. Essentially the largest cruise ships are floating mini cities, with almost ever amenity required by guest and crew alike.

Management of payment systems on cruise ships
Management of payment systems for a mini city with thousands of “inhabitants” is a major undertaking. The proliferation of entertainment and retail options onboard cruise ships has exacerbated the issue of payment management. Additionally, issues surrounding cash management naturally led the cruise industry to become an early adopter of a cashless “society” approach onboard. Guests and crew will typically pre-register a credit card before embarking and will receive their ‘cruise card’. The cruise card (generally) becomes their only payment method onboard, with transactions such as drinks, tips or gift shop purchases registered to their centralised folio. Their cruise card also allows the guest access to their cabin. At the end of the voyage the charges accumulated by the guest are automatically charged to their respective credit card.

Innovation in constant development
Despite cashless payment being a mature technology within the cruise sector, technological innovation has continued to develop. The largest US based cruise company Carnival Cruise Lines (CCL) which includes major brands such as Cunard and Disney Cruise Lines. CCL has further integrated the notion of a centralised payment method into the entire cruise experience, enhancing a guest’s voyage significantly. ‘The Carnival Medallion is a personalised IOT based wearable device. Originally unveiled by Arnold Donald, CEO of Carnival Corporation, at CES 2017, the Medallion™ device persistently connects a cruise guest’s unique digital identity with an intelligent shipboard Experience Internet of Things (xIoT™) ecosystem to enhance guest-crew interactions and deliver a high level of personalized service on a large scale. The device enables all aspects of an elevated guest vacation including hassle-free payment, keyless and personalized stateroom access, frictionless embarkation, on-demand services and more.

Despite the cruise sector being all but frozen due to the global pandemic, it is expected that the segment will recover slowly late into 2021 and 2022. Negative cashflow issues are likely to affect the pace of technological innovation within the cruise segment, but it is widely acknowledged that providing a safe, integrated, and exciting experience for guests onboard is a key to recovery.

(Thanks for this article to maritime expert Dan Rooney)