Contactless payments refer to payments made by moving or tapping a contactless device in front of a contactless reader, after which, payment is made.
When did the contactless payment start?
The process of contactless payment is not a new one. In fact, it has been around since the 90s. France was the first country where the immediate contactless payment was tested, and since then, it has been adopted by small, medium, and large companies all across the globe.
How does the contactless payment work?
Contactless payments can be made through two ways: smart devices or contactless cards (mastercards and visa cards). Inside the contactless cards is a chip that throws out radio waves, and an antenna is built into the plastic to keep the connections steady with the contactless card reader.
Smartphones and other electronic devices have Near-Field Communication (NFC) technology built-in, which has the same technology as Radio-Frequency Identification (RFID) to transfer data.
How long does contactless payment take?
There is no fixed amount of period set for the contactless payments to process as it depends on the merchant. However, usually, it takes around 2-4 working days for the transactions to be processed as they are authorised before being processed.
Advantages of using contactless payment
One of the most significant advantages of using contactless payment is that it is efficient and quick. Therefore the queues are shorter than the lines for paying cash for transactions, saving customers their time.
Secondly, the transactions are more secure. As mentioned earlier, contactless payment methods use RFID and NFC technologies, which protects the data from being misused. Therefore, the chances of fraud are less.
Thirdly, contactless payments are highly flexible. Gone are the days when you had to carry bulky wallets consisting of cash, receipts, and cards. Now, you have the option to pay through smart devices such as smartwatches, smartphones, wristbands, fitness trackers, and several other electronic devices.
Fourthly, contactless payments are a great way for businesses to attract more customers and make current customers loyal. They can offer a seamless experience of transactions, which is efficient and less time-consuming.
Lastly, there is no additional cost businesses have to pay for providing contactless payment services to their customers. Therefore, enterprises get to increase their profits and improve customer experience.
Why use contactless payment?
In 2020, COVID-19 pandemic took the world by storm and suddenly the need to go contactless in as many things as possible seemed essential. Businesses that were already offering contactless payment services gained more customers and companies that were not, started providing contactless payment services. There is no denying that contactless payment is secure and is a great way to maintain hygiene as there is no contact at all.
Contactless payment services save time, are efficient, and hassle-free.