Is RFID-Powered Self-Checkout the Answer to In-Store Transactions?

Self-checkout has become a staple of today’s in-store retail environment. In fact, a 2024 study conducted by PYMNTS found that two-thirds (66%) of US consumers prefer self-checkout to staffed checkouts, with Generation Z (84%) and millennials (76%) leading the way in embracing the technology. 

It might come as a surprise, in that case, to see that over the past year, a number of retailers have actually started backpeddling on their use of self-checkout technology. Some of the nation’s biggest retailers, including Walmart, Target and Dollar General, all took the decision to start removing self-checkout terminals in select stores last year. These decisions came as a result of poor in-store experiences, with the retailers claiming that self-checkout negatively impacted customer satisfaction.

While traditional self-checkout may be causing issues for some brands, the answer doesn’t lie in removing the technology completely. In the retail industry that already struggles to deliver high-quality customer service due to staff limitations, creating more demand for labor hours only restricts their ability to improve experiences. Yes, customers will benefit from face-to-face transactions and not needing to scan their own items, but this significantly limits the ability of each individual in-store associate to deliver additional customer value on the sales floor.

The Current Challenges of Self-Checkout

According to The Grocer, 37% of shoppers openly admit to stealing in-store. The traditional self-checkout terminals, which rely on weight plates to verify items during transactions, have become catalysts for theft. With little to no presence of in-store associates at the checkout area, customers can easily commit scan fraud – manipulating the scanning process or failing to scan items at all.

Another challenge of typical self-checkout terminals – as previously noted above – lies in fragmented experiences. One core frustration with the technology is that it often requires associate intervention as a result of system glitches or misread items in the packing area. In these instances, intervention is required from in-store associates before the transaction can continue. With one team member monitoring multiple terminals at once, lengthy delays can be caused if more than one customer needs assistance. Suddenly, a technology that was deployed to streamline the checkout experience significantly slows down transaction rates, and longer queues begin to form.

How Does RFID-Powered Self-Checkout Alleviate Existing Issues?

Tracking all products at item-level from manufacture through to sale, RFID technology enables retailers to create complete visibility of their entire inventory. However, with this technology deployed at the foundation, RFID can also empower brands to evolve their self-checkout offering to enhance in-store experiences and security at the same time.

Teamwork Commerce’s RFID-Powered Self-Checkout terminals deliver seamless efficiency that facilitates secure transactions in 30 seconds or less. Customers begin by placing their basket or cart in a designated scanning zone. From here, built-in RFID readers automatically and accurately scan all items. Customers simply pay for their goods and leave the store. 

Automatic scanning actively mitigates theft attempts, removing the opportunity for customers to commit scan fraud. However, if a customer does manage to successfully progress beyond the self-checkout terminal, RFID tags themselves – which are woven into each individual product – are capable of triggering in-store alarms, flagging any unscanned items as customers pass through barriers. This allows retailers to identify and curb shoplifting without hindering the customer experience. 

Importantly, the seamless flow of transactions created by RFID-powered self-checkout significantly improves the customer experience. Streamlining the checkout process for customers, the technology reduces checkout and queuing times, while still enabling visitors to complete transactions at their own pace.

With fewer staff also tied to point of sale (POS) terminals, retailers can deploy more staff that are completely focused on adding value to customer experiences. Sales associates can dedicate time to creating meaningful, personalized interactions – delivering top-tier experiences before customers move onto a seamless checkout experience.

Moving Back in Time is Not the Answer

Self-checkout technology was a revolutionary solution when it made its way into retail. It was introduced for a reason: to alleviate pressures on in-store staff while creating more streamlined transactions for customers. Back-tracking on self-checkout is not the solution to improving customer experiences – the technology simply needs to evolve.

As RFID’s influencer across retail grows, its role in enhancing security and customer experiences at checkout – the final touchpoint in the retail journey – can transform a retailer’s operations. Mitigating theft attempts while enhancing satisfaction, RFID solves a number of issues that typical self-checkout encounters – all while enhancing shop floor efficiencies.

Interested to know how your business can benefit from RFID-Powered Self-Checkout? Get in touch!