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Contactless Payment Options

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Implementation of contactless payment options

Are you a business owner who is curious about going contactless but not sure where to start with? Then your search ends here!

It is obvious that you most probably have seen a contactless payment taking place at some point in your life.


What actually a contactless payment means?

 From the word itself it indicates the very meaning that it is a mode of payment transaction that do not require any physical contact between the business and its customers.

The money is being transmitted from one account to another through electronic devices or even through smart phones nowadays.


Contactless Payment – A Brief History

Financial transactions attained a greater milestone over the past two decades.

The history of transaction begins in 1960s, by the discovery of magstrips cards that people found it very easy and convenient for using it as a daily source of purpose.

Later years saw the massive updation of transaction methods such as internet banking, NIFT/RTGs transactions etc. These methods became much useful and prevalent among common people as well as top business.

So coming into the most recent and updated version of transaction that is contactless payments.


How does contactless payment mainly work?


Near field communication [NFC] is the main technology used behind contactless payment methods.

NFC is the updated version of already existing technology called Radio Frequency Identification or else called in short as RFID.

RFID has been used for a while for different applications like shopping malls, warehouses etc.

It has a feature for scanning the information. In order to do a payment work successfully two components are very important

The reader or POS terminal and consumer payment device has to be in close association for it to become a successful transaction.

The payments are done securely is mainly because the radio waves from NFC chip establishes a connection in between and exchanges the data.

In order to make a transaction possible, the user should have a card or a smartphone that contain Near Field Communication [NFC] installed in a smart phone/card.


What do you mean by a contactless payment card?

Those debit as well as credit cards having the NFC technology are mainly referred to as contactless payment cards. These cards are easily hand able and a card holder can just wave their cards over a POS terminal reader to make easy payments.

It helps the customers to transfer the exact money without coming into direct contact with currency or can avoid touching any devices.

As part of the countries growth economically. Majority of the population is about to adopt cashless payment method for financial purposes.

But still in many have the doubt relating about its security. Even though cashless payments are easy and hand able, still there is a seed of doubt about the security of such transactions.


Does contactless payments provide secure transactions?

Contactless payments methods are generally safe and provide secure environment for friendly transactions.

Each and every transaction generate a unique code to ensure its security. For making it possible they use standard encryption technology to identify each transaction.

Each transaction is being done with unique code, so hackers find it nearly impossible to hack the information about the payment transaction.

The codes mainly used only for one-time transaction purposes that enhances it’s security a greater extent.

Even if we figure out the reusage of code more than one-time. At the authentication level the issuer can easily detect the scam and can reject it’s authorization.

Nowadays most of the cashless payments are very much secure as if even if it finds a scam over transaction, the application sends an alarm message before the money transaction is done completely.

Major benefit of choosing cashless payment is that the data as well as the money transactions are done through radio waves.

In debit or credit cards or transaction is done through chip. Confidential datas that which cannot be transferred through cards and services are done by adopting additional security measures. This were mainly done by different companies.

They built security servers that differs accordingly with different companies for doing confidential transaction purposes.

Here the consumer have the ultimate control over the transaction. In such situations, they mainly avoid sharing the card or information for doing transactions in shopping counters or elsewhere.

Apart from using card payment methods it is always beneficial to make use of cashless payment methods in digital platforms.

The card payments involve the payment technologies like inserting, swiping or tapping the card into the device. Well cashless payments are effortless and can be done by attaining few steps through smartphones.


Key benefits of using contactless payments

  • Faster money transactions within seconds of time: Ques literally become a thing of past in the case of cashless payment methods.
  • Ensures more security: Every single transaction is made with unique code which gives the user more privacy and security
  • Greater experience for the consumers: Cashless payments makes the like of consumers more contempt and satisfier. It gives an easy and huzzle free transaction experience for the consumer.
  • Flexible access to payment devices: There will be no actual headache of carrying bulky wallets consisting of cards and money.


Next we can look upon as,


How we can implement contactless payment in a business?

There are many ways to implement digital payment in business like:


Making use of NFC terminal

Using NFC technology, it is very easy to make payments as it only needed to shift your card through a compatible reader.

There are many companies that provide this service to all kinds of businesses.

The most commonly used terminals are: square and PayPal.


To create an online checkout.

The simplest way to get the digital payments is to create an online checkout. It allows one to upload the products and services to a page without actually the need to create a web page.

The most popular online checkout options are: square, stripe, PayPal etc.


Creating website

Another way to implement contactless payment method is creating website.It can be very useful for to migrate a business completely or partially into a digital ecosystem.

There are many ways to create a website and the most popular options are: Spotify, wix, square space, etc


For an upgraded economy the current scenario of transaction methods suggest the use of cashless payment methods for fastest financial transaction purposes.

Some of the obstacles faced while the implementation of this type of methods are:

  1. Not everybody knows how to use a digital platform for money transaction .So here in this situation we have to teach some customers to use it but still it won’t be fully successful also.
  2. Includes payment charges for processing methods depending upon the method that has been used. It can make prices quite expensive
  3. Every card won’t provide the service of NFC technology. So not all users can make cashless payment.
  4. Some customers won’t use or show reluctant to use this technology because of lack of knowledge and experience.


How the covid-19 pandemic boost up the implementation of contactless payment options.



Even before the pandemic the consumers has widely increased the usage of cashless payment options. However the business now in the current scenario flourished as the consumers have adapted the new normality of social distancing in their life.

Contactless payment became an essential solution for avoiding the direct contact with currency and money.

According to the recent survey, we notice that in the percentage of reluctant people to opt the cashless payment considerably increased up to 30%and 70% of those users are likely to stay up in using contactless payment during covid period.


Related : COVID -19 AND MLM

We find a steep increase in the number of users during the covid panademic. Covid-19 actually played as a catalyst for the sudden increase in users of cashless payments.

For example:

  • In US about 51%of people started to use Apple pay and other cashless payment methods.
  • About 58%of people in US are likely to use contactless payment methods nowadays than even before the pandemic.
  • MasterCard witnessed the increase of 40% in the first quarter of year in users.
  • All around the world the users of MasterCard is been increased by 79% during the pandemic.


Some popular contactless payment apps are:

  1. Apple Pay Mainly the Apple devices have been equipped with this cashless payment app.which helps the Apple users to debit and credit money as well as to transfer their amount to another person’s account as fast as it can with in no time and with ensured security.
  2. Google Pay: Google allows the users to use this app with atmost security and privacy. It is a accessible to anybody who install this app.
  3. Samsung Pay: Just like Apple pay and Google pay the Samsung company launched a digital wallet in their mobile phones. It does the same as like any other cashless payment app.

Related: MLM apps for Mobile


Some terms related to contactless payment methods:

  • Chip and signature card: It is a kind of credit card that reads information through a magnetic strip.
  • Payment gateway: It is a front- end technology that reads the information of cards.



 Types of credit cards



There are mainly three types of credit cards:

  1. Bank issued cards: such as visa and master cards
  2. Store and priority cards: such as Bay and Sears.
  3. Travel and entertainment cards: which is also referred as charge cards like: Diner’s club, American express


For an updated and developing tomorrow we should shift our technologies accordingly based on our convenience and security.

Cashless payment introduces much updated and modern kind of using technology that develops the economy of the country to a greater height.






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