Contactless payment technology is a payment system that does not require direct contact between the and the payment device. With the development of contactless payment systems, users no longer need to carry cash or credit cards to make everyday shopping transactions. Instead, they can use multimedia devices such as mobile phones or smart cards for payment.
The advantages of contactless payment technology are:
- Convenience: Contactless payment technology allows users to quickly and easily make payments by simply placing their mobile phone or payment card near a card reader. There is no need to withdraw cash or search for loose change in a wallet, saving time and effort.
- Security: Contactless transactions are secured with encryption and authentication methods. This helps reduce the risk of money loss and fraud. Payment information is protected and not disclosed to third parties.
- Enhanced privacy: Users do not need to touch the payment device, helping to keep their personal information from being exposed to the outside.
- Hygienic: In the era of the COVID-19 pandemic, contactless payment technology has become more popular than ever. Users do not need to have direct contact with payment devices, which helps to limit the spread of the disease.
Contactless payment technologies are popular nowadays:
- NFC (Near Field Communication): Users only need to bring their mobile phones or devices with integrated NFC close to a reader to make payments. The payment information will be transmitted through short-range radio waves between the two devices. E-wallet applications such as Apple Pay, Samsung Pay or Google Pay often use NFC technology to make contactless payments.
- QR code/barcode: the user scans the QR code displayed on the screen of the payment device. After scanning the QR code, the payment information will be confirmed and completed
In Vietnam, contactless payment technology is still in the early stages of penetrating modern payment forms. This shows the potential for contactless payments to explode in the future, especially when user acceptance for contactless cards is very positive.
