Contactless payment allows customers to authorize payments by tapping payment tokens like contactless cards or mobile wallets near a merchant's POS system. It provides a fast, convenient checkout experience known as frictionless payment. The Covid-19 pandemic increased demand for contactless payments by encouraging tap-and-go transactions over handling cash or cards. Contactless uses near field communication technology where payment devices and POS terminals exchange encrypted data within 10cm to complete secure transactions quickly. Besides speed, contactless payments can also reduce lines and improve throughput for venues like transit systems.

1. Contactless Payments &
How It Works?

2. What is Contactless Payment?
When goods or services are bought through a contactless payment, the method may then be referred to as a frictionless checkout.
Recognizing the need for such payment methods, today, it is indeed, one of the quickest growing payment methods across the world. The
Covid-19 pandemic along with social distancing measures, and health and hygiene concerns have played a massive role in its development
recently and will further push its use. It has turned out to be the most fortunate form of payment mode as well.
Contactless payment is a wireless monetary transaction in which the customer authorizes monetary compensation for purchase by pushing a
security token near the vendor’s POS System. Famous security tokens for contactless payment include chip-enabled bank cards and smartphone
digital wallet apps. Contactless payments may also be guided as touch-free, tap-and-go or closeness payments.

3. Transactions throughout the earlier decade or two have expanded in leaps and bounds. In the 1960s, magstripe cards came into
reality and people discovered it easy and simple to use a plastic card for dealings. For the next four decades, diverse kinds of
cards offering discounts and offers came into being. Contactless was around since the 1990s but did not gain much engagement
across the globe. By the year 2000 and late 2000, digital payment came into reality. Internet banking, NEFT/RTGS transactions
became dominant among businesses and ordinary people.

4. Today the payment landscape has grown again with the upgrade in the latest financial technology which has resulted in amazing devices like POS
terminals, mobile banking, QR code payments and much more like that. Contactless payment is one of the most promising modes of payment yet
developed
Contactless payments are known for being secured because the customer does not share billing or payment information straight with the vendor.
Instead, all transmission is encrypted and each purchase is tokenized with a one-time transaction number.
The adoption of contactless payment has been revved by COVID-19 and a passion for consumers to avoid person-to-person contact when making in-
store purchases.

5. How Does
Contactless
Payment
Works?

6. Near field communication commonly known as NFC is the
technology based on which contactless payments operate. It
is an upgraded version of the current technology known as
RFID – Radio Frequency Identification. RFID has been in
usage for a prolonged time for various applications like
shopping malls, warehouses, bags etc which can be scanned.
It is only just that RFID started to be utilised for contactless
payments.
The two components – reader or POS terminal and the
consumer’s payment device have to be nearby for it to
function successfully. The radio waves from the NFC chip
establish a connection and exchange encrypted data making
the transactions quick and secured. A card or smartphone
enabled with NFC can be utilised near the reader, usually 10
cm or less to make the payment or execute a transaction.
This leads to the subsequent section which is about
contactless payment cards
Besides security, what other usefulness
do contactless payments offer?
Contactless payments take somewhere between 30-50% shorter time than standard credit card
payments and are over 60% quicker than cash transactions. This makes them a suitable fit for
micropayments and different low-dollar-value purchases. Contactless payment methods are
popularly used to improve throughput for public transportation turnstiles, parking garage checkout
terminals and road tolls. Although the precise amount of time saved per transaction may be smaller
than a minute, the minutes preserved can add up and remarkably reduce the time customers spend
waiting in lines.
Card Cutters is the leading Credit Card Machine provider in the UAE as well as throughout the globe.
Contact Now for your Contactless POS Terminals

7. Visit : www.card-cutters.ae
Sent your requirements to : sales@card-cutters.ae
Address : Office 330, Emarat Atrium, Near Gulf News, Sheikh Zayed Road, Dubai
Contact Number : 971 45668860