Cashless Payment Systems for Festivals: Guide for Merchants

From Glastonbury to Coachella, festivals are drawing bigger crowds every year. Mintel predicts the UK festival market will hit a record £3.22 billion by 2026.

Yet festivals are much more than music venues; they are hubs for socialising, eating, drinking, and unique experiences. Vendor sales, from food to hot tubs, account for 60% of total festival revenue. This shows the need for efficient payment systems, especially since festivals attract digitally savvy 18-35-year-olds, according to TS Entertainment.

There are two main ways to process cashless payments at festivals: via traditional card payments and digital wallets, or closed-loop systems using event payment apps, branded cards and wristbands. In this guide, we’ll explore these festival payment solutions and help you decide which is best for your festival.

Traditional Cards & Contactless

Traditional payment methods like debit and credit cards, along with digital wallets and contactless payments, are the obvious and straightforward choice for festival payments. Digital wallets and bank cards are the two most popular payment methods globally.

If you opt for this, ensure all vendors support contactless payments, which younger attendees prefer for convenience. Contactless payments use Near Field Communication (NFC) technology to enable data exchange between a device or a bank card and a payment terminal.

Contactless payments are already widely adopted and are likely to keep growing due to their convenience. Juniper Research projects that the value of contactless transactions could reach $11 trillion by 2027.

Payments by QR Code

Another tech-savvy solution for a cashless festival is using QR codes provided by vendors. To pay with a QR code, customers simply open their camera app or a dedicated scanning app, point it at the QR code, and tap the notification that appears.

This process may redirect them to a secure payment page where they can enter their card details or use mobile payment options like Apple Pay or Google Pay. This method works particularly well for universal pricing, such as entry fees or passes.

Festival vendors have several options for how to create QR codes for payments. They can easily display QR codes at the checkout counter, on individual products, or even on their website. At Noda, for instance, we offer merchants a direct payment link embedded in the QR code, which includes the product or service description and a pay button.

Cashless Wallets: Wristbands, Cards, Phone Apps

Closed-loop cashless payments is another option that can greatly enhance festival experience for the fans. 

This cashless event payment system uses a virtual account for purchases from festival vendors, linked to a wristband, festival-branded card, or a special app. Attendees can top up their accounts before the event when buying tickets, or during the event at top-up points or through a digital wallet. The process is typically as follows:

1. The attendee sets up a cashless account on the event payment platform, links their ticket, and tops up their wristband, card or account
2. Upon arrival, they exchange their ticket for a pre-loaded cashless wristband or card
3. They use the wristband or card to pay for food, drinks and experiences with a single tap
4. After the event, they can request a refund for any remaining balance

These wristbands or cards, like contactless payments, operate using NFC, a type of RFID technology. NFC allows two devices to communicate wirelessly when placed within 4 cm of each other. While RFID can be used for various activities over distances up to 100 meters, NFC is specifically used for payments.

The wristbands are typically crafted from durable woven fabrics and contain a waterproof NFC plastic chip, which is essentially a digital wallet gateway. They usually feature a secure closing mechanism to ensure festival-goers won't lose them, and can be customised to the festival’s branding.

There are additional benefits to using this closed-loop payment system. For instance, they can be programmed to control access levels, differentiating VIP tickets from regular attendees or managing campground check-in and check-out. They also help accurately track attendance and spending and often come with analytics features to gain insights after the event. This data can later be used to prevent overcrowding, optimise logistics and payments at future events.

Benefits of Cashless Payments for Festivals

• Generate Revenue Before the Event: Fans can pre-top their accounts with credit, helping them budget and providing an early revenue stream for organisers. This also helps in forecasting and planning for the festival.
• Reduce Queueing Times: Cashless systems cut transaction times, improving the fan experience by reducing long waits. Festival-goers dislike long queues for payments.
• Improve Hygiene and Social Distancing: The adoption of cashless payments supports hygiene and social distancing measures, which is especially important after the Covid-19 pandemic.
• Reduce Fraud and Theft: Removing cash from festivals decreases the risk of theft, both from attendees and employees. This enhances security and peace of mind for everyone.
• Cut Operational Costs: With no cash transactions, operational costs drop as cash handling and reconciliation processes are simplified. Fewer staff are needed to manage finances.
• Analyse Fan Behavior: Cashless payments provide detailed insights into fan spending habits. This data allows organisers to analyse what fans buy, when, and where, enabling targeted promotions and rewards.
• Enhance Visitor Flow: Quicker transactions mean smoother movement throughout the festival. This keeps fans engaged and enjoying the event without unnecessary delays.

How to Choose a Cashless Payment System for Festival

Selecting the right event payment solution for your festival is crucial for a smooth and enjoyable attendee experience. Here’s how to choose the best option:

• Assess Your Needs: Determine what features are most important for your festival. Consider factors like transaction speed, ease of use, and security.
• Evaluate Payment Methods: Decide between traditional payments and/or QR codes or closed-loop systems like wristbands or apps. Each has its advantages, so choose based on your audience’s preferences.
• Vendor Compatibility: Make sure all your vendors can use the payment system you pick. For example, check that their payment terminals work with your system.

Cashless QR Codes & Online Payments with Noda

​​Noda is a global online payments provider. We partner with 16,500 banks across 27 countries, spanning over 30,000 bank branches. Noda supports a wide range of currencies for globally-minded clients. We offer payment links, QR codes and many more solutions. We also help merchants with end-user KYC, payment processing, LTV forecasting, UX optimisation and open banking payments.

With Noda's advanced Open Banking API, online businesses can easily integrate direct bank payments, offering their customers a seamless and secure payment experience with lower fees. Whether you're looking to enhance customer verification processes, optimise payment systems, forecast long-term value, or refine user experience, Noda is your partner in growth.