How contactless payments and Credit Card use have evolved

People have become increasingly interested in contactless payment methods as they search for more convenient options for payment. Using a contactless payment method, customers can perform monetary transactions without any physical contact between their Credit Cards or debit cards and the swipe machines. Instead, they simply need to hover their card over the swipe machine to transfer money.

Post the pandemic, contactless payments emerged as the most popular payment option among customers. Let's examine the aspects of contactless digital payments and how Credit Cards are adapting.

Understanding contactless payments
 

Financial institutions offer debit cards for convenient access to bank accounts. With a Credit Card, you can borrow money quickly for short periods of time. Both these cards provide instant funds for online shopping, POS payments, etc. Before contactless payments were available, cardholders needed to swipe or insert their credit or debit card in the POS machine slot to make payments. However, this method was time-consuming, inconvenient when outlets were crowded, and sometimes led to magnetic strips being worn out or torn.

With contactless payments, you can conveniently pay online by hovering your card over the POS machine. The wireless card recognition technology reads your card details and enables payments. In addition to being less time-consuming and more convenient, contactless payments are also considered more secure than other forms of payment because they use tokenization and data encryption.

Most new Credit Cards are now equipped with NFC (Near Field Communication) or RFID (Radio Frequency Identification) to facilitate contactless payments in stores. However, if you are looking for a Credit Card with a contactless payment facility that also rewards you for each transaction, opt for an IDFC FIRST Bank Credit Card. You can enjoy up to 10X rewards on every card transaction and get exclusive shopping, lifestyle, entertainment, and travel benefits. Get approval quickly by signing up online. Explore more!

Key benefits of contactless payment for customers
 

Along with the ease of payment, the contactless payment method has several benefits such as –

· Enhanced security and fraud protection
 

As opposed to magnet strips, contactless payment uses a completely different payment process. Each transaction is encrypted, tokenised, and generates a unique code every time it is made. As a result, contactless transactions are more secure and fraud-proof by avoiding unauthorised access.

· Convenient and quick payment
 

With contactless payments, you can save time by not having to hand over your card, swipe, and then enter your pin. You just bring your card to the POS machine's vicinity and make payments.

· Increased adoption of mobile payment technology
 

Contactless payments can also be made through virtual cards in your mobile banking app. You can conveniently pay for your shopping through your phone with complete security and transparency.

· No need to carry cash or physical cards
 

With contactless Credit Cards, you don’t need to carry cash or physical cards. It reduces the hassle of keeping your cards and money safe. Moreover, it keeps you more organised as you can manage multiple cards in one place.

Contactless payments are gaining popularity and they are expected to replace physical payment methods soon. You can also get rewarded for your transactions in the form of cashback and reward points that you can redeem later for additional discounts.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.