In today’s day and age, contactless payments have become wildly popular not only because of their convenience but also because of their ability to give people the option of not having to touch anything during a pandemic. One of the most popular types of contactless payment are contactless debit and credit cards. Typically referred to as “Tap to Pay” cards, these cards look the same as a regular debit or credit card from the exterior, but they contain a small antenna inside them that allows wireless communication with a reader at a store. There are many other types of popular contactless payment options, so we’ll be reviewing what those are here.
Types of contactless payments
- Apply Pay
- Contactless debit and credit cards
- Venmo, Cashapp, PayPal, Zelle, etc.
- Google Pay
- Samsung Pay
- Wristbands (Apple watch)
As you can see, there are many ways that contactless payments can be used. Not all retailers and businesses accept them, but as these types of payments continue to grow rapidly in popularity, we are sure that their acceptance rate will increase as well. In today’s modern times, if something is quick, easy, and convenient, it is much more likely to become widely adopted by the majority of people. In 2016, only 3% of all credit cards could make contactless transactions. However, credit card networks and issuers have noticed a significantly large increase in contactless payment options recently, especially in 2020 because since the outbreak of COVID-19, fears over the transmission of the disease have forced consumers to rethink how they shop, spend, and pay for their products and services.
For contactless payment options to actually work, a unique one-time token is sent to a payment terminal for each transaction. The token does not contain any of your card details, so if the purchase is compromised, that token cannot be used to make another purchase. This added layer of protection is the same system that is used when you insert your card’s chip into a card reader, which is why so many people also love the sense of security they feel when they used contactless payment options (not to mention how quick it is). Additionally, mobile wallets also have the added step of needing to verify with a PIN, password, fingerprint, or facial recognition before a payment can be made.
There are many benefits to contactless payments and we hope this was able to give you a better understanding of the types of contactless payment options that are available today. If you have any questions, please contact us!