Above: Image courtesy VISA

Benefits and Security for Using Contactless Payments

 Contactless payments, or tap-to-pay with a contactless card, mobile device, or wearable, are quickly becoming one of the most convenient, reliable, and secure ways to pay worldwide. Contactless payment technology enables a fast and convenient way to pay for daily purchases. It also offers a secure and reliable experience. Contactless transactions are protected with EMV® chip security technology and tokenization, which have already proven to drastically reduce counterfeit fraud.

In recent years, this technology has gained wide acceptance among Visa users. During the April-June quarter of this year, tap-to-pay, known as contactless payment technology, grew 4% compared to last year, reaching 80% of face-to-face transactions globally, excluding the United States (U.S.)

In the U.S., it already exceeds 50%, and 30 U.S. cities have a penetration rate above 60%. In Latin America and the Caribbean, the penetration of contactless payment use grew to 66%, as consumers have chosen to use this solution and have found it efficient and convenient when paying at local merchants.

In markets with emerging adoption of contactless payments, Trinidad and Tobago shows progress with 55% penetration, and Jamaica with 50%.

“Contactless payment credentials have set a new path in technological and financial innovation. They are paving the way for other innovations that will make the consumer experience safe, simple, convenient, and frictionless,” said Jorge Salum, County Manager of Visa Trinidad & Tobago. “The adoption of contactless payments by consumers worldwide, and particularly in Latin America and the Caribbean, serves as a boost to continue working collaboratively with other participants in the payment ecosystem to develop solutions and applications that bring benefits, innovation, and security in paying or receiving payments for both individuals and businesses.”

When using contactless payments, it is important to consider:

• The consumer must ensure their card or device is enabled for contactless payments.
• When making a purchase, the consumer only needs to tap their contactless-enabled device or card to the payment terminal.
• The point of sale emits a visual or audible signal indicating that the transaction has been sent to the card issuer’s bank for approval.
• Visa security risk analyses are applied to verify the transaction.
• The issuer’s bank response returns, indicating whether the purchase can proceed.

The contactless card or contactless-enabled device is secure for several reasons:

• Each transaction is accompanied by a unique code that securely protects cardholder payment information.
• Contactless technology requires the merchant to initiate the payment first, and the contactless card or contactless-enabled device must be held in close proximity (2.5-5 cm) to the terminal for the transaction to occur.
• Contactless transactions are reliable and secure, in the rare event of an unintended transaction, cardholders have multiple ways to contact their issuing bank to initiate a refund request.
• Additionally, various financial institutions offer instant alerts about transactions made with their credentials, and cardholders have channels to contact their issuers in case there are unauthorized transactions in their statements.