Contactless payment refers to the payment of an amount to a terminal by using a debit or credit card without any swiping or entering a PIN in the terminus, hence the term “contactless”. We all know the traditional method of payment of money in a terminus by swiping our card, followed by entering our secret PIN which is always a hassle with payment declination for various reasons like forgetting the PIN and is also a time-consuming process amidst our busy, fast-paced life.
Evolving technology has brought to us a solution to free us from the hassle of traditional card payment by introducing Contactless cards. On the outside, these cards are similar to our traditional plastic cards with a Wi-Fi logo on them whereas on the inside these cards are equipped with RFID and NFC technology which connects easily to an NFC or RFID-supported payment terminus also having a similar Wi-Fi logo engraved on them. The result is a smooth payment, without any requirement for pin code or swiping. The information between the card and the terminus is passed using the embedded chip technology by NFC or RFID and payment can be made from the account of the cardholder to the terminus. The situation will now be the vendor intimating the customer about the amount and entering the same in the terminus and the customer will just have to tap the terminus with the card or merely bring it near to it and VOILA! Payment is complete.
This new way of payment has just made paying secure, easy, and fun. The amount of time required for paying is merely half of what was required earlier. No more waiting in a long queue for payment, fewer worries of forgetting PIN, and in the current pandemic situation, it is the perfect way to make minimum contact on payment hence safety from the Novel Coronavirus.
The cards are very secure for payment but currently, a cap is present on all cards for contactless transaction beyond which traditional method has to be used with the same card. The fear of card cloning still lurks in the minds of the users. Though for such, the fraudster has to be in very close proximity to the card. Nevertheless, RFID and NFC protected cases are being made available by which once the card is placed, it cannot be cloned.
The technology is still in its early days and new researches are being made to make it more secure till then, we can pay up to the capped amount. Hopefully, in the coming days, we would be able to use it and make payment fun and hassle-free.