Why is Contactless Technology Important for Organizations?
For over 20 years, contactless technology has been used to help users conduct transactions efficiently, quickly, and securely. Contactless technology is deemed to grow and be widely used in the upcoming years.
Fremont, CA: Contactless technology allows users to make card payments via near-field communication (NFC). The technology offers benefits for both consumers and stores, which has resulted in exponential growth of its adoption in recent years. Incorporating this technology in POS terminals and credit cards creates a communication channel that helps send and receive information for payment authorization very securely.
Here's a list of the top 5 things to know about contactless technology and its benefits.
Smart Card Technology
It is a shorthand reference to contactless smart card technology. Contactless smart card includes small sophisticated computers and interacts with card readers wirelessly through short-range frequency. It is capable of providing the highest level of computer security so that it protects identity, financial information, and privacy.
A vast number of people leverage contactless technology regularly in passports, identity cards, bank payment cards, and transit fare cards to ensure secure, convenient, and fast transactions.
A More Secure Payment System
A dynamic card verification and encryption is used to prevent cloning and counterfeit of cards. At the time of the contactless payment transaction, the computer within the card generates a robust code, which is communicated to the payment terminal. This unique code is then certified by the issuer, and an authorized reader approves the transaction. The information generated cannot be used for the second time, hence, making it difficult for the fraudsters to extract the card information and create a counterfeit card with the data that is stolen.
The Widespread of Contactless Payments
The introduction of EMV chip technology is likely to result in making contactless payment popular. The United States is inclining to secure EMV chip technology. Payment brands such as MasterCard, Visa, American Express, and Discover have showcased roadmaps to move the U.S. to EMV chip cards. Various analysts consider this change to be a catalyst for contactless payment growth.
Contactless Payments are Not Just for Retail
The Transportation industry is one of the biggest adopters of contactless smart cards for efficient, fast, and secure transit payments. In most cases, a contactless transit card is issued by a transit operator. This is a contactless fare card specifically designed for paying for travel on specific transit options like buses and trains. It also makes way for direct transit fare payments via smartphones with NFC, as they use similar standards, such as open contactless payments.
Check out: Top Payment and Card Solution Companies