Going Contactless: The Future of a Smart Economy

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As many people move to metropolitan cities and areas, transformations are occurring accordingly. With faster payment transactions, affordable transport solutions, and efficiency, technology-driven contactless payment systems have become the most preferred convenience method. Plus, in this era of coronavirus, people have gotten used to the “new” normal of transacting businesses whilst integrating them into numerous routine tasks. Therefore, to achieve quicker streamlined checkouts, smart ticket solutions and digital payment options through contactless processing have become the growing trend.

Smart Economy

What is Contactless Payment?

Contactless payment is one of the most innovative technologies that has drastically improved the purchasing process for consumers. Unlike standard debit and credit cards, a contactless payment does not go through the Point of Sale (POS) terminal. Rather, customers who acquire digital wallets can tap or scan through the app from their smartphone with a personal QR code and make payments faster.

How Does it Work?

For those wondering how it all works, contactless credit cards consist of a chip fixed inside them activated by emitting Radio Frequency Identification (RFID). With an antenna built into the card’s plastic body to connect with a payment reader, payment information is transmitted when you tap or wave a device close to the reader, not by touching anything.

The card’s outer layer also includes a symbol that looks somewhat like a WiFi signal you appear on a device. This verifies your card to have contactless payment capabilities.

Why Should You Go For It?

  • Boosts App Adoption

While contactless payments shun outdated technology, it prioritizes application usage. Built on digital infrastructure, going contactless opens many doors for a fully online experience. Businesses can operate on an e-commerce basis with customers purchasing products online without needing a physical store.

  • Promotes Customers Convenience

How the world works today has influenced people to get fast and move quickly, even in their day-to-day lives. Instead of waiting in long queues and manually handling paperwork, institutions prefer technology-infused processing. There is no need to enter a PIN with contactless payment, take out your credit card from the wallet, write down bank cheques, carry physical cash, or count them. You can speed up the checkout process and get customers to walk out the door hassle-free. Since customers can carry their electronic wearables and devices everywhere they go, contactless payments allow reduced manual items.

  • Minimizes Risk for Security

Having financial information and history in massive amounts without high security can be dangerous. This gives a hacker to retrieve data from your phone and steal card information. As such, contactless payments give safer options to regularly check your statements for fraudulence and authenticate bank data, unlike regular cards. With constant data changing privileges, hackers cannot breach said limits to duplicate customer cards.