Contactless payment

Contactless payment systems are credit cards and debit cards, key fobs, smart cards or other devices, including smartphones and other mobile devices, that use radio-frequency identification (RFID), near field communication (NFC), or Samsung Pay (MST) for making secure payments. The embedded chip and antenna enable consumers to wave their card, fob, or handheld device over a reader at the point of sale terminal. Contactless payments are made in close physical proximity; they are usually distinguished from mobile payments which can also take place on mobile phones, but mobile payments use broad-area cellular or WiFi networks and do not involve close physical proximity.

Some suppliers claim that transactions can be almost twice as fast as a conventional cash, credit, or debit card purchase. Because no signature or PIN verification is typically required, contactless purchases are typically limited to small value sales. Lack of authentication provides a window during which fraudulent purchases can be made.

Research indicates that consumers are likely to spend more money using their cards due to the ease of small transactions.MasterCard Canada says it has seen "about 25 percent" higher spending by users of its Mastercard Contactless-brand RFID credit cards.

EMV is a common standard used by major credit card and smartphone companies for use in general commerce. Contactless smart cards that function as stored-value cards are becoming popular for use as transit system farecards, such as the Oyster card or RioCard. These can often store non-currency value (such as monthly passes) in additional to fare value purchased with cash or electronic payment.

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Wikipedia