Following the COVID-19 outbreak contactless payments gained popularity. Many consumers used them to avoid touching their purchases and risking exposing themselves the germs. If your company isn’t yet in the game, it’s time to think about how this technology can benefit you.

Contactless payments are made by the swipe of a mobile device with chip technology or card at the terminal. This then sends the transaction to https://southbeachcapitaladvance.com/how-consumers-and-merchants-make-contactless-payments/ the card issuer. The card is then asked to confirm the transaction using a checkmark or a sound.

The benefits of security offered by contactless transactions are substantial. Contrary to traditional magnetic stripe cards which are easily copied by skimming devices contactless transactions are authenticated. This means that only the bank on the file has access to transaction data. Contactless transactions don’t require a signature or a PIN. However, the cardholder’s issuer could require verification if the transaction is over the floor limit. This is communicated by the card issuer to the merchant via the chip on the card or mobile phone.

Customers are also able to make contactless payments using their smartphones and wearable devices like smartwatches. By connecting their card to a digital wallet such as Apple Pay, they can use their smartwatch or smartphone at the point of sale to make purchases. Our mobile app lets you manage your card’s settings. N26 accounts come with a virtual Mastercard with contactless capabilities.