Contactless payment is a secure method for consumers to purchase products or services using a debit, credit, or smartcard—also known as a chip card—by using RFID technology or near-field communication (NFC).
Examples of non-credit or debit card contactless payments include transit cards, Apple Pay, Android Pay, and Google Wallet.
Understanding Contactless Payment
To make a contactless payment, tap your card near a point-of-sale terminal that is equipped with the contactless payment technology. Since contactless payments do not require a signature or a personal identification number (PIN), transaction sizes on cards are limited.
The advantage of contactless payment is that it eliminates the need for a customer to enter a PIN and amid the COVID-19 pandemic, this is the safest form of payment. Tap customers also speed up the line so that both the merchant and customer save time when contactless payment is used. Another benefit of contactless payment cards is that consumers who tap tend to use their cards more frequently.
Key Takeaways
- Contactless payment is considered a safe and easy way to pay since it doesn’t require consumers to input their PIN.
- Contactless payment is a secure payment method using a debit, credit, or another “smartcard” by using RFID technology or near-field communication.
- To use the system, a consumer taps the payment card near a point-of-sale terminal equipped with the technology.
- Due to COVID-19, there has been a significant increase in consumers using contactless payments.
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