COVID-19 has undeniably increased the implementation of digital payments not only in India but all across the world. Today, so many contactless payment apps are available to help us quickly pay from our mobile devices, watches, and other wearable devices for goods and services. It has enhanced and simplified transactions. But what exactly is this contactless payment system, and why is it beneficial? Let’s find out.
What is a Contactless Payment System?
Contactless payment entails paying for something through a debit card, credit card, smartcard, or another payment device. It uses radio frequency identification (RFID) technology and near-field communication (NFC).
How to Use a Contactless Payment System
Radiofrequency identification (RFID) relies on tags and readers who use radio waves to identify an object passively (your credit card). On the other hand, Near Field Communication (NFC) technology is already available in iOS, Android, and other mobile devices.
Contactless payment systems don’t mandate using a customer’s identification number (PIN), swiping the card, or even signing the credit or debit card receipt. Instead, all processes take place in codes that seem inaccessible to cybercriminals, keeping your credit card and bank details safe and secure.
Here are some examples of contactless payment apps that use Near Field Communication technology: FavePay, Samsung Pay, Apple Pay, Google Pay, MI Pay, any mobile bank application, or UPI cashback app that supports contactless payment.
Key benefits of Using Contactless payment system for customer
Here are some benefits of a contactless payment system that makes them so popular:
Convenience and Ease of Use
The biggest advantage of contactless payment is how easy it is. Also, it offers speedy transactions and shorter lines at checkout. Many retailers allow contactless payment systems, a quick and easy way to pay for your purchases. Moreover, there is no need to put a PIN to approve transactions or even sign the receipts.
Safety and Security
A contactless payment system is far more reliable and secure than other payment modes. Since the user does not have to tap the card on the scanner, the potential of fraudulent activity automatically reduces. This risk is further reduced through encryption and dynamic data technologies.
Flexibility of Payments
Apart from speeding up the transactions, contactless payments offer extra convenience to consumers due to the wide choice of payment devices available. Cards aren’t the only way to make contactless payments. Today, contactless payment systems allow shoppers to pay with their smartphones, watches, and contactless cards, allowing them to pay in the most convenient way for them.
Generally, merchants introduce loyalty programs connected with contactless payment app. Sometimes even banks offer some cashback and incentives as a reward to the customers for using the new contactless payment methods.
There are many reasons why more and more consumers are adopting this technology. Yet many people still fear using a contactless payment system as they trust old traditional ways of payments. But it is one of the most groundbreaking technologies that is helping people around the globe.
According to Worldpay’s 2018 Global Payment Research, contactless payments will significantly expand and become the world’s second most common payment method behind bank cards by 2022. Hopefully, you have got a clear vision of contactless payment systems after reading this post. So, are you willing to upgrade yourself to contactless transactions?