Contactless payments allow a customer to pay by holding a card, phone or smartwatch near a payment terminal instead of inserting it or swiping. The transaction is completed over a short-range radio link and is often called tap and go.
The technology is called near field communication (NFC). When a card or device is tapped, it exchanges encrypted payment data with the terminal over a distance of a few centimetres. Mobile wallets such as Apple Pay and Google Pay use a token in place of the real card number, which adds a layer of protection. Higher-value purchases may still ask for a PIN or device authentication.
Retailers and hospitality venues value contactless for the speed at the counter and the reduced handling of cash, which can shorten queues at busy times. It also supports newer ways to take payment, such as phones used as terminals and wearable devices.
Considerations include confirming that every terminal you use accepts contactless and mobile wallets, setting up the terminal so customers can see where to tap, and understanding any limits that apply to PIN-free transactions. Staff should know how to handle declined taps and what to do when a customer's device will not connect.
Contactless matters because customers now often expect to tap by default, and a business that cannot accept it can feel out of date. RetailCare supplies payment terminals and RetailCarePAY solutions that support contactless acceptance.