by Grace Barone
The future is here. Contactless point-of-sale has revolutionized the way we make purchases. We thought paying with the chip was easy and convenient. Now all we have to do is tap our card on the machine and boom. The transaction is complete. No inserting, no swiping, no change. What's even easier is paying with your phone. You don't even need to pull out your card. Just open your mobile wallet and wave your phone over the machine. Not to mention, with the rise in crypto-currency usage, we may soon see a complete contactless payment take over in the future. Contactless point-of-sale is one of the more popular ways to pay, and for good reason. I've explored all the different benefits of contactless payment, and am here to give you a run down on why its becoming the preferred way to pay.
How Contactless Payments Work
Contactless payment is a secure method for customers to purchase products or services using a debit or credit card, or cell phone. All customers need to do is tap their card or phone near a point-of-sale device that is equipped with the right technology. These methods of payment use radio frequency identification (RFID) technology or near-field communication (NFC).
NFC is the main technology used for contactless payments. The wireless communication technique enables data sharing between two devices when they are within a few centimeters of one another. It is a form of contactless communication that utilizes a 13.56 MHz operating frequency and has a maximum data transmission rate of 424 kbit/s. Applications for NFC technology include contactless payment systems, access control systems, ticketing for public transit, and data transfer between devices. This is how Apple Pay and Google Pay work. The NFC connects the mobile device to the POS system and allows the two devices to communicate via an encrypted signal. NFC technology is considered to be more secure than traditional payment methods because it uses encryption to protect the data being transmitted. The payment processes almost instantly so long lines are few and far between.
Along with NFC technology, RFID technology forms one of the core components of contactless payment systems. Both NFC chips and RFID tags can wirelessly communicate with a reader or POS terminal through radio waves. In contactless payment systems, a credit or debit card has an embedded RFID tag or NFC chip. This is how the contactless payments are enabled on your credit or debit card. A consumer only needs to place their card or other payment device close to a contactless payment terminal to complete a transaction. The terminal then initiates the payment transaction by contacting the tag or chip using RFID technology.
Why Contactless Point-of-Sale is Preferred
People enjoy contactless payments for a number of reasons:
Because contactless payments use encryption technology to protect against fraud and ensure the protection of personal data, they are frequently more secure than traditional payment methods. In order to further increase security, certain contactless payment systems also demand verification, like a fingerprint or facial recognition. Mobile payments and contactless cards do not transmit your name, card number or 3 digit security code.
Convenience and speed:
Contactless payments are quick and simple, enabling users to complete the transaction right away without having to insert a card or enter a PIN. This is especially helpful when time is of the essence, like in crowded retail settings or on public transportation.
Due to the lack of physical touch required between the customer and the payment terminal, contactless payments are also more hygienic than conventional payment methods. This is crucial right now. Even though the concerns about Covid have diminished, people are still more focused on preventing the spread of pathogens.
A number of devices, including credit and debit cards, smartphones, and smartwatches, can be used to make contactless payments. Customers now have more options on how to make payments and can select the method that suits them best.
Compared to conventional payment methods, contactless payment solutions frequently feature greater spending limits. This is because banks and other financial institutions are more willing to accept the risk associated with higher spending limitations and because the technology is thought to be more secure. This higher spending cap is especially beneficial for high-value purchases like renting a new car or making travel arrangements.
Real-Time Payment Notifications:
Consumers can keep better track of their spending by using contactless payment systems, which offer real-time payment notifications. Customers have the option of receiving notifications via email or mobile devices, giving them a clear and current view of their account activities. This can aid in preventing fraud and mistakes by quickly recognizing dubious transactions, which is beneficial to both merchants and customers.
Contactless payments are less harmful to the environment than conventional payment methods. They lessen the requirement for paper receipts and can decrease the amount of plastic trash produced by credit and debit cards. This can support a more sustainable future by lowering the carbon footprint connected to payment transactions.
Getting a Contactless Point-of-Sale System at your Business
In general, contactless payments are popular because they are quick, practical, hygienic, secure, and adaptable. Contactless payment solutions are growing in acceptance by both customers and merchants. If you're a business owner and have yet to adapt to the new wave of contactless payments you should look into upgrading your system. VMS offers a variety of devices that work as contactless point-of-sale systems. If you're interested in learning more about our devices, head to getvms.com or fill out the form below!