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#Fincabulary 31 – Contactless Payment

Meaning – It is a secure method for consumers to purchase products or services via debit, credit or smart cards (also known as chip cards), by using RFID technology or near-field communication (NFC).

To make a contactless payment, a person simply needs to tap their card near a point-of-sale terminal – leading to the nickname “tap-and-go”. Since contactless payments do not require a signature or a PIN, transactions sizes on cards are limited. The allowable amount for a contactless transaction varies by country and by the bank. Examples of non-credit or debit card contactless payments include transit cards, Apple Pay, Android Pay and Google Wallet.

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