Contactless Payments & How It Works_
                     Contactless Payments & 
How It Works?
What is Contactless Payment?
Contactless payment is a wireless monetary transaction in which the customer authorizes monetary compensation for purchase by pushing a 
security token near the vendor’s POS System. Famous security tokens for contactless payment include chip-enabled bank cards and smartphone 
digital wallet apps. Contactless payments may also be guided as touch-free, tap-and-go or closeness payments. 
When goods or services are bought through a contactless payment, the method may then be referred to as a frictionless checkout. 
Recognizing the need for such payment methods, today, it is indeed, one of the quickest growing payment methods across the world. The 
Covid-19 pandemic along with social distancing measures, and health and hygiene concerns have played a massive role in its development 
recently and will further push its use. It has turned out to be the most fortunate form of payment mode as well.
Transactions throughout the earlier decade or two have expanded in leaps and bounds. In the 1960s, magstripe cards came into 
reality and people discovered it easy and simple to use a plastic card for dealings. For the next four decades, diverse kinds of 
cards offering discounts and offers came into being. Contactless was around since the 1990s but did not gain much engagement 
across the globe. By the year 2000 and late 2000, digital payment came into reality. Internet banking, NEFT/RTGS transactions 
became dominant among businesses and ordinary people.
Today the payment landscape has grown again with the upgrade in the latest financial technology which has resulted in amazing devices like 
POS terminals, mobile banking, QR code payments and much more like that. Contactless payment is one of the most promising modes of payment 
yet developed
Contactless payments are known for being secured because the customer does not share billing or payment information straight with the vendor. 
Instead, all transmission is encrypted and each purchase is tokenized with a one-time transaction number.
The adoption of contactless payment has been revved by COVID-19 and a passion for consumers to avoid person-to-person contact when making in-
store purchases.
How Does 
Contactless 
Payment 
Works?
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RFID – Radio Frequency Identification. RFID has been in 
usage for a prolonged time for various applications like 
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micropayments and different low-dollarp-avaymluee nptus.rchases. Contactless payment methods are 
popularly used to improve throughput for public transportation turnstiles, parking garage checkout 
terminals and road tolls. Although the precise amount of time saved per transaction may be smaller 
than a minute, the minutes preserved can add up and remarkably reduce the time customers spend 
waiting in lines. The two components – reader or POS terminal and the 
consumer’s payment device have to be nearby for it to 
Card Cutters is the leading Credit Carfdu nMcaticohni nseu cpcroevsisdfeurll yin.  Tthhee  UraAdEio a ws awveelsl  afrso tmhr tohueg NhoFuCt  tchheip g lobe. 
Contact Now for your Contactless POeSs Ttaebrlmisihn aal sconnection and exchange encrypted data making 
the transactions quick and secured. A card or smartphone 
enabled with NFC can be utilised near the reader, usually 10 
cm or less to make the payment or execute a transaction. 
This leads to the subsequent section which is about 
contactless payment cards
Visit : www.card-cutters.ae
Contact Number :  971 45668860
Sent your requirements to : [email protected]
Address : Office 330, Emarat Atrium, Near Gulf News, Sheikh Zayed Road, Dubai