You may be interested to know What are contactless payments. As the name derives, when making payments for purchases, there is no need for physical contact between POS and credit card/phone. NFC (Near Field Communication) is the technology powering contactless payments. It is performed via RFID (radio frequency identification). It is over specific radio frequency that NFC transactions are carried out. This, in turn, enables your smartphone/ card to communicate effortlessly with a payment reader. But they both need to be close, which is generally 10cm or even less.
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What are contactless payments –Know the advantages
From a Business perspective:
- Enhanced customer experience: Businesses providing contactless payment facilities offer a quicker, smoother checkout experience. This in turn earns them their loyalty. It also allows stores to optimize loyalty programs as well as improve customer relationships.
- Enhanced operational efficiency: Since there are involved fewer workforces, it is much faster to adopt tap-to-pay technology. It also reduces time spent on counting cash or operating card devices.
- Fraud protection: This technology is claimed to be encrypted and secure enough to prevent hacking attempts. Enhanced transaction security results in businesses enjoying faster receipts without any disputes. Almost all issuing banks take adequate measures to prevent fraud at all levels.
- No additional cost: No extra processing charges are levied for enjoying this payment facility. The fee that is generally applicable for regular credit card transactions is what is charged for contactless payments.
From Consumer perspective
- Safer transactions: Industry experts claim that Tap-to-pay technology is much more secure and reliable when compared to other payment options. This chip technology protects you from all fraudulent purchases. It is done through dynamic data and enhanced encryption techniques.
- Ease of use: This form of payment facilitates shorter queues and quicker transactions during checkout. Moreover, cash management is effortless. There is no need to punch in the PIN details.
- Loyalty benefits: Store-offered loyalty programs sync effortlessly with the tap-to-pay phone used to make payments. During payment time, loyalty points and discounts are conferred automatically. Incentives and cashback are also offered by a few banks by using the contactless payment feature.
- Payment device flexibility: On opting for this cashless payment mode, you do not have to rely on your bulky wallets. But to make payments, your smartphone needs to be NFC-enabled.
Hence, getting to know What are contactless payments, will allow you to enjoy its benefits.