What is the contactless payment?
The word “contactless payment” related to a protected and secure technique for the customers to buy or purchase any commodities or product, or any kind of service utilizing a debit, credit or smartcard, or any another payment equipment by using the (RFID) which is stands for radio frequency identification technology and the (NFC) which stand for near-field communication. This payment strategy works by thumping a payment card or other equipment near the point-of-sale terminal equipped with the contactless payment method. The contactless payment is also related to as tap-and-go or the tap by some banks and retailers. The current announcement by the Visa and the other US card issues imply that they will boost the availability of the contactless card for US customers in the imminent future. Visa rates there will be 300 million contactless cards allocated in the US by the end of the year 2020, up from the indicated 100 million at the end of this year as declared on its 2018 revenue call. The telecom operators are beginning to get implicated in the contactless payment via the use of any near area communication phones.
How does the contactless card work?
Contactless payment enables customers or the buyer to pay for products and the services utilizing their debit and the credit cards with the help of RFID technology which is also known as the chip card or the other type of payment tool or devices without the necessity to swipe or enter the (PIN) which stands for personal identification number and sign for the transaction. Dealers that approve contactless payment have the point-of-sale terminals with a unique and special symbol recognizing the technology, which is identical to the logo of WIFI but twirled onto its side. When the vendor or the merchant’s network prompts the consumer to pay, they carry the card between the close to contactless payment emblem on the terminal. Data is disseminated electronically utilizing data or the information from the chip of the card to the bank. When the policy ratifies the tap, it motions the consumer with a beep and the green light or the checkmark.
Once the acceptance is obtained or the receiver, then the transaction is complete. With the peak in the wireless technology and the popularity of the creative equipment or the devices, customers can also attach with their credit card to the device. All of these payment activities are done by any kind of payment application such as PhonePe or Apple Pay all of these payment apps to allow customers to secure the store and the debit and credit card data or the information.
Advantage and disadvantage
The fraudsters are prepared to steal your confidential and important information from the magnetic stripes on the back of the payment card. This enables them to clone every confidential information and make a new card, so, these kinds of activities directing to the crime of the fraud. So, the contactless payment chops down the risk to both the customer and the vendor also, that’s because they are more protected than utilizing the magnetic stripes on the back of the payment card.
The data adapted through the vendor terminal through the contactless payment on the other hand, so, its encrypted means it is hard or difficult to stop and steal. Despite this protection or the security characteristics, frauds and the criminals are still able or prepared to skim the cards from the customers’ wallets with the help of using the smartphone to read. The span at which a card can be skim or read is very short and even if the criminal is near to grad your data, they can’t build a manuscript of the card. This is not a real card with magnetic steaks.
The History of the Contactless Payment
So, the contactless payment has been over since the 1990s with just some of the vendors and the dealers which are utilizing this technology during that duration. Since then, it has outstretched or the spread out to comprise thousands of banks credit card corporations, traders, and the dealers around the whole world. South Korea’s transit to the council in Seoul gave one of the world’s initial contactless payment policies.
Inaugurated in the year of 1995, the policy later became accepted as the UPass which is providing the riders a sharp and quick and simple way to pay for the bus trips utilizing the contactless payment method. Mobil gave one of the main contactless payment systems which are named Speedpass in the year 1997, this enabling consumers to pay for gas using an outstanding fob packed with cash at participating gas station. The contactless payment method became famous in the UK or (United Kingdom) after London’s transit mechanism executed its prepaid contactless Oyster Card method for transit the riders to utilize on the Underground.
Also Read:-Robotic Process Automation (RPA)
Some examples of contactless payment methods
In the present time we all have lots of alternative methods to pay contactless which is good, all know but your general knowledge, I’ll tell you some of the contactless payment transaction methods.
Visa card is will provide you do make your payment contactless since you just need to show your Visa card on the payment screen which will fetch your card chip number and you will able to make your payment contactless.
Airtel payment app is also another alternative that will give a secure, comfortable, and contactless payment method you just need to scan or put the ID number of the vendor and you will comfortably pay contactless.
PhonePe is an India application, with the help of this application you will able to directly transfer the payment into the vendor account with the help of a phone number which is attached to the vendor bank account or you will pay with the help of the scanning system of this application both of the method is contactless.
Samsung pay is another payment application that will provide you a contactless payment method but the disadvantage of this application id that, you will able to use this app only if you have a Samsung smartphone.