WHAT IS A CONTACTLESS PAYMENT?

A contactless payment, as the name suggests, is a transaction system that doesn’t require any physical contact between a buyer using a smartphone or credit card and the POS terminal. It is powered or enabled by NFC (near-field communication).

NFC is the technology that powers contactless payments through a type of radio frequency identification (called RFID).

NFC transactions take place over a specific radio frequency that enables the card or smartphone to communicate with the card machine when they’re close together (usually 10 centimetres or less). It is very secure.

It is a security token ( smartphones, ATM cards) enabled system where you carry out transactions just like you want to transfer files btw two phones using the Xender app which is done within a very close distance between devices.

Things like Apple Pay, Samsung Pay and Google Pay are other examples