There has been a lot of talk recently about contactless credit cards. However, this technology has been around for quite some time now. For instance, MasterCard introduced such cards way back in 2003, Chicago Transit followed suite in 2011, and the London Tube jumped the bandwagon in 2014. So clearly, this technology is not new.
Over the past few years, contactless cards have been popular in Europe, Australia, and Canada. Further, this concept is steadily gaining popularity in the United States. There is an estimation that more than 2.3 billion contactless cards will be issued globally by 2022.
If you are one of the people who have no idea what these cards are, then you have come to the right place. Continue reading below to learn more about contactless credit cards and how they work.
What Exactly Are Contactless Cards
This concept has contactless technology known as NFC (near field communication). These cards usually have an NFC chip plus a radio frequency (RFID) antenna attached to them. This is why they are also referred to as RFID chip credit cards or RFID credit cards.
Unlike the traditional cards, when shopping with these contactless cards, you wave it over the terminal, and it will use a one-time code and radio frequencies to complete the transaction. You will not have to sign, swipe, or dip. This also makes them faster than the EMC chips cards since the whole process takes a few seconds.
If you want to make a speedy transaction, then these cards will work perfectly for you.
If you are familiar with contactless credit cards, then you must have come across “contactless payments” as well. These two work hand in hand, but it’s essential to keep in mind that contactless credit cards are only one way of making a contactless payment.
Contactless payments are any form of payment that does not need physical contact. In other words, you do not have to swipe or even insert the chip. This technology has been around for ages; the first bus payment made using this technology was made in Seoul in 1995. The Mobil in the 1990’s allowed clients to make payments for gas with a crucial contactless fob that was loaded with money.
There is also the tap-and-pay kind of technology that can be embedded in watches and phones. Most of the modern contactless technologies involve the use of digital wallets such as Apple Pay and Google Pay. For instance, there are RFID antennae that are used by contactless credit cards to complete payment.
To use your phone for payment, you need first to download the appropriate tap-and-pay services for your particular phone.
When these contactless cards penetrated the American market, they were not a big deal. But today, with merchants getting on board every day and even consumers jumping on the bandwagon, one would only say that it is a technology that will be around for years to come. It’s time to ditch that old card and start tapping to pay.