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Alliance Activities : Publications : Contactless Payments: Merchant ROI Model

Contactless Payments: Merchant ROI Model

The Smart Card Alliance Payments Council has created an Excel model to assist merchants in calculating the return on investment for accepting contactless payments. This model is now available as a beta release.

What the Model Does

The model asks you to enter data that is specific to your business, including:

  • Revenue
  • Store information
  • Payment transaction information (volume, type and cost of transactions)
  • Transaction speed
  • Expected changes in transaction volume and speed after contactless payments are accepted
  • Implementation costs (e.g., POS terminal, training, software).

The model calculates:

  • The increase in revenue (due to higher value contactless transactions)
  • The savings resulting from fewer chargebacks, reduced cash handling and improved operational efficiency.
  • The incremental costs–the one-time cost for POS hardware, installation, software development, marketing and training and the recurring costs for terminal support and conversion of cash sales to contactless credit/debit transactions.

Based on the revenue, savings and costs, the model then shows the resulting return on investment.

Download the Model

A beta version of the model is now available for download.

  • Download the Excel ROI model.
  • Download the ROI model with example data that is intended to be representative of a regional quick service restaurant chain.
  • Download the user instructions for how to use the model.

Important note: This model works with Microsoft Excel 2002 and later versions. You must have macros enabled in Excel.

Send Us your Feedback

We’d like feedback on the beta version of the merchant ROI model.

  • Did you have any problems using the model?
  • Does the model include the key decision factors that you would use in determining the ROI for a project?
  • When you entered data, did the model generate a realistic ROI?
  • Are there other benefits, cost savings or costs that should be included in the model?

Send an email to with your feedback.


This ROI analysis is provided as an analysis research tool and should not be considered financial advice. The Smart Card Alliance and its members are not responsible for any errors, assumptions or any conclusions drawn from the information provided. The data provided is meant to provide a picture to be considered when making a business decision. It is not intended as strategic advice or as an investment-related projection.

About the Smart Card Alliance Payments Council

This Excel model was developed by the Smart Card Alliance Payments Council Merchant Business Case Work Group to provide a tool for merchants to determine the return on investment of contactless acceptance. Publication of this document by the Smart Card Alliance does not imply the endorsement of any of the member organizations of the Alliance.

The Smart Card Alliance wishes to thank Brent Bowen, INSIDE Contactless and Merchant Business Case Work Group Chair, for leading the project and for developing the model. The Alliance also would like to thank Merchant Business Case Work Group members for their contributions: Chase, First Data Corporation, Discover Network, INSIDE Contactless, Ubiq, Inc., USA Technologies, VeriFone, ViVOtech.

The Payments Council is one of several Smart Card Alliance technology and industry councils. The Payments Council was formed to focus on facilitating the adoption of chip-enabled payments and payment applications in the U.S. through education programs for consumers, merchants, issuers, acquirers/processors, government regulators, mobile telecommunications providers and payments service providers. The group is bringing together payments industry stakeholders, including payments industry leaders, merchants and suppliers, and is working on projects related to implementing EMV, contactless payments, NFC-enabled payments and applications, mobile payments, and chip-enabled e-commerce. The Council’s primary goal is to inform and educate the market about the value of chip-enabled payments in improving the security of the payments infrastructure and in enhancing the value of payments and payment-related applications for industry stakeholders. Council participation is open to any Smart Card Alliance member who wishes to contribute to the Council projects.


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