It is estimated that by 2024 contactless card payment would amount to $6 trillion. Undoubtedly the figure is a sharp rise when pitted against the transactional value of $2 trillion in 2020. This positive estimate has been based on several factors, including the robust security aspects and associated benefits that accompany contact credit card payment.
To figure out why contactless credit cards make a better payment, alternative users must learn about how it works and its associated safety features.
How does a contactless credit card work?
To gauge the efficiency and added security of contactless card payment, it is essential to understand how it works in the first place.
To begin with, most smart credit cards use either the radio-frequency identification (RFID) or the near-field communication technology to both initiate and complete the transaction. Near-field communication is an upgrade of the RFID. It combines the smartcard interface and card reader in one device.
Notably, for successful transactions, users are required to tap their credit card near an RFID equipped POS terminal. Usually, users are notified with a beep, checkmark sign or green light once the system has accepted the tap.
Benefits of contactless credit card payment
Besides the ease of paying for purchases with just a tap of a card, other benefits accompany a contactless credit card.
The following pointers highlight how contactless credit card users can benefit from using it –
Besides being equipped with the protection of PIN and chip payment, contactless credit cards and devices are embedded with encryption and dynamic data protection technology. It facilitates safe transactions and protects users’ credit cards from being hacked. Also, the fact the smart card never leaves the hand of users during transactions eliminates the risk of fraudulent practices like skimming that are common in hand-held electronic devices.
- Minimize the scope of fraud and limits data breach
This payment method uses data encryption which does not share the card user’s data with retailers; it eliminates the fear pertaining to the data breach. It also minimizes the risk of exposing valuable credit card information to hackers and other cybercriminals. Additionally, several financial institutions extend credit cards that come with added security features to help tackle the problem of credit card fraud. For example, the Bajaj Finserv RBL Bank SuperCard comes with security features like zero-fraud liability cover and in-hand security to help protect users against frauds and unauthorized usage.
Regardless, individuals who are planning to avail of a contactless credit card must make it a point to find out the different convenient options to pay their credit card bills. It would not only help to opt for the best credit card bill payment option but would also help to streamline it effectively.
- Ease of use and greater convenience
Contactless credit card eliminates the need to use the credit card PIN or signing any receipt altogether, thus, making the payment process fast and convenient. Also, the connection is relatively strong and instant-on contactless terminals. In turn, it speeds up the transaction process significantly and proves useful in retail shops with long queues.
- Opportunity to earn more rewards points
As a means to encourage the contactless card payment method, select financial institutions now extend accelerated reward points to their users for specific transactions or purchases. Such points help users to get the most of their credit cards while making transactions more affordable.
In a nutshell, the use of secured technology and the limited scope of data breach and fraud make contactless card payment a safer payment alternative to credit card payment. Regardless, to make the most of this smart payment alternative, individuals must avoid certain mistakes. For instance, keeping the card carelessly, not checking transactional details regularly, handing the card to other people and forgetting your PIN are some of the common mistakes to avoid.