Contactless Payments Gain Momentum
This allows a customer to simply tap a payment device rather than swipe a card
Maybe you’ve heard of “tap and pay” — the contactless payment technology that allows a customer to simply tap a payment device rather than swipe a credit card or push it into a card reader.
Tap-and-pay technologies use radio-frequency identification, which can be embedded on phones, watches and other wearable devices. To communicate, the card and the retailer’s card reader must be within 4 to 10 centimeters of each other, says Phil Sealy, principal analyst at ABI Research, a technology market intelligence company.
With digital wallets, the smartphone contains a pair of chips: one that accesses and encrypts the card information, and a near-field communication chip that transmits the card data to complete the transaction, Sealy says.
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