The Rise of Contactless Payments: How Mobile Technology is Revolutionizing Transactions

The Rise of Contactless Payments: How Mobile Technology is Revolutionizing Transactions

Paying for any purchase without using cash is now easier than ever. You don’t have to take your credit card out of your wallet to do this. This article will explain how mobile technologies contribute to the development of contactless payments.

Without contact: the evolution of payments

Contactless payments are a modern, convenient, fast, and secure payment method. You need to bring the device or card to the POS terminal to pay for the purchase. Payment is made through a unique NFC (Near field communication) chip, found in bank cards and many gadgets, including almost all modern smartphones. The contactless payment methods technique is rapidly gaining popularity worldwide, as it brings the purchase of goods to a new level of convenience.

The easiest payment method is with a credit card. Contactless cards have become the next stage in the development of payment instrument technology: an antenna has been added to a conventional card with a chip for contactless interaction with a payment terminal. VISA and MasterCard named this technology PayWave and PayPass, respectively. Contactless cards are unified, so there are no differences between the cards of one or the payment system. However, it is not always convenient, so smartphones and other gadgets supporting contactless payment technology are popular today.

Depending on the operating system on your phone, you need to install Google Pay or Apple Pay – applications for making contactless payments. Subsequently, you must link a card to them and go through authorization. It is a very convenient solution since you can add several payment cards from different banks in such an application. As a result, you will be able to pay for goods and services using your smartphone, the same as a contactless card. Please note: the device must support this technology and have a built-in NFC chip.

Valuable contactless payment benefits

The method of contactless payments ensures the following benefits for users:

  • Fast payments

These operations require less time than traditional ones. And it’s not about the technical processing of the payment. Payments are faster due to the reduction of many operations or actions by the cashier and the payer himself. The cashier does not have to take the card, insert it into the payment terminal and wait for the customer to enter the password. The payer does not need to take out the card, etc.

  • Security

In such operations, the transfer of the card into the wrong hands is excluded. It means that the risk of receiving confidential information from a third party (the number and term of the card) is reduced, the password is not voiced, and is not typed in the open, where it can be spied on. All this contributes to the safety of operations. Moreover, a multi-level security system securely protects each NFC payment and has a unique dynamic code.

  • Durability

If we compare a bank card with a magnetic stripe and a bank card with a chip, the latter will last until its expiration date and will not lose its “commodity” appearance. The reason for this is precisely the chip in the card and the payment method with such a card – without physical contact with ATMs and terminals. Almost all traditional bank cards lose their presentable appearance after several months of active use.

Contactless payment rules

One common question that arises with contactless payments is how many times can you use them before it asks for your PIN. The answer varies depending on the country and the specific financial institution. In the United States, for example, the limit for contactless payments without a PIN is typically set at $100. After a certain number of transactions or a certain amount spent, the customer may be prompted to enter their PIN as an added security measure.

It’s important to note that contactless payments are subject to the same fraud protections as traditional card transactions. If a fraudulent transaction occurs, customers should immediately contact their bank or financial institution to report the incident and dispute the charge.

In addition, it’s essential for customers to keep track of their contactless payments and to regularly check their account statements for any unauthorized transactions. By following these best practices, customers can enjoy the convenience of contactless payments while also ensuring the security of their financial information.