Contactless Payment
What Is Contactless Payment?

The term contactless payment refers to a secure method for consumers to purchase products or services using a debit, credit, smartcard, or another payment device by using radio frequency identification technology and near field communication.
This payment method works by tapping a payment card or other device near a point-of-sale terminal equipped with contactless payment technology. Contactless payment is also referred to as tap-and-go or tap by some banks and retailers.
History of Contactless Payment
Contactless payment has been introduced in Europe around since the 1990s when radio frequency identification technology invented. South Korea introduced the first contactless prepaid card to the Seoul Bus Transport Association in 1995. After this period contactless payment have been spreading over the world in different countries.
Contactless payment is available through banks and other financial institutions. But other companies have also jumped on board offering their own versions of contactless payment.
Examples of contactless around the world which most known are:-
Samsung Pay
Samsung also launched a digital wallet, allowing users to store their payment card information onto the app to use at merchant terminals. Samsung Pay users can also earn cashback and other rewards by using their phones to make purchases.
Google Pay
Google allows users to make payments at participating brick-and-mortar and online retailers through a secure method via the Google Pay app. Instead of using a credit card number, Google shares an encrypted number tied to the user’s payment card with the retailer.
Apple Pay
Most Apple devices already come equipped with the Apple Wallet app. It allows users to store credit and debit card information onto their device.

Recently pay band contactless payment system is gaining popularity among other contactless digital payment mechanism. Pay band and contactless payment system are works based on Near Field Communication technology up to 10 cm.
Currently most countries uses pay band contactless digital payment system around the world among these countries.
China is a leading user of contactless payment system. According to the evidence that release in 2023 the number of contactless payment transaction in china is quadruple the transaction that was conducted in United States of America.
In our continent Africa Nigeria and South Africa known by using pay band contactless payment system.
Accordingly digital transformation is one of the strategy that our country focused on for the coming years. For the implementation of this strategy the financial industries of the country play crucial role. Among these the introduction of pay band contactless payment system recently introduced by Commercial Bank of Ethiopia is the best example.

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31 thoughts on “Contactless Payment

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