16 August, 2018
En este artículo:
Nowadays we all have heard about contactless payments and their many advantages. It is also likely to have heard that this kind of payments are not completely secure and that there is still much room for improvement.
What is true in all this? Let’s review the features and advantages of contactless payments and the main devices in which they can be carried out, to understand why this kind of payments are the future of in-store payments.
For a couple of years it has been normalizing to pay in stores with contactless credit and debit cards. Even most users of contactless card payments have activated the payment without pin option when the amount is less than 20€.
These automations greatly simplify the purchase for the user, however it is on cards where fraud can be easily committed, due to its format and its punctual use. By not requiring its activation with a code before payment (when it’s less than 20€) and being stored in your pocket or purse most of the time, its level of security in situations of great accumulation of people, as it would be within the subway, has been questioned.
But the truth is that to make a payment is necessary to use a POS and these are always linked to a company and the people who work there, so that in case of unauthorized charging, you would know immediately who has carried it out. Besides, security mechanisms are already being established in order to avoid any kind of risk of fraud in these situations, such as blocking the card if more than 5 payments of less than 20€ are made in one day. It should also be noted that, to date, in Spain no robberies have been reported by the police through this method, which gives us an idea of the low level of danger.
Although contactless payments with a mobile phone are still not as normalized as with cards, the truth is that they have greater advantages of convenience and security. To carry out the payment, the activation of the device and the payment app is necessary through codes or physical identifications that only the owner can make. This eliminates the risk of fraud and, if we add the fact that the mobile phone is usually used more frequently than the cards and its access is therefore faster, it also increases convenience.
Today there are mobile applications known as e-wallets that allow all kinds of financial operations in contactless format and, often, without even using a bank account. This is the case of our CHANGEiT Wallet app, created to help any company or entity to be able to offer its customers multiple financial services and loyalty programs in a simple way.
Finally, it is also possible to enjoy contactless payment services using a wearable, either daily or at specific times and places. Temporary wearables are, for example, the payment wristbands that have begun to popularize in music festivals or hotels and allow contactless payments without the need to take cash, but neither the card nor the mobile phone. The agility of this system and all the benefits it implies for users are obvious.
For day to day payments exist wearable devices connected to a smartphone such as watches and smart wristbands. In this case, the procedure is actually carried out by the mobile phone and the connected device only "projects" it, that’s why in this kind of devices you can find the features of the previous section adding the convenience of not having to take out even the phone.
As a disadvantage can only be mentioned the possible risk of fraud, and this can only occur in very extreme circumstances. Knowing that devices can be remotely blocked and that experts work every day to minimize the risk and no case of fraud associated with contactless payments has been reported (in Spain), we can say that such risk is practically non-existent.
At PaynoPain we are experts in fully secure payment systems with the newest technology. We carry out projects adapted to the needs of our clients, so if your company is looking to implement a contactless payment solution or any other kind of payments technology, don’t hesitate to contact us through this form and we will study the viability of the project.
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