Contactless Mobile Payments

If you have an interest in mobile apps and cell phone technology, you might have noticed a move towards contactless sharing. It started with sending addresses and phone numbers, then evolved into music and images. The feature allows you to pass information from one phone to the other without the two phones touching.

When this technology was first introduced, mobile devices could swap data by tapping the two phones together. As innovation progressed, it became possible to wave the phones next to each other and information would be passed. There are two main ways for this to happen.

The two phones can use sharing apps to pass information via a Bluetooth, USSD, or a WiFi connection. Or they could use NFC (Near Field Communication) technology. In such cases, the phone has to have an NFC reader. By a passing a card over the card reader, information can be shared and payments can be made.

Secure payment option

It may seem counterintuitive, but contactless payments are more secure than regular card payments. This is because criminal elements have developed skimming tools that can be attached to ATM slots or electronic card readers. When a customer uses the tampered ATM or card reader, their information  and PIN are recorded on the skimmer, which can then be used to make a dummy card.

The fraudsters will then use the dummy card to pose as you and rack up bills on your card. The burden is then on you to prove those transactions were fraudulent, and by the time you detect the theft and block the card, you’ve lost money and considerably lowered your credit.

Non-contact payment systems eliminate the fear of skimming, because your card never comes into contact with anything. You wave it at a safe distance, keeping your card in your possession at all times. Mobile encryption is more advanced than keypads, and the seller can’t steal your information because no data is stored on the phone.

Quick and convenient

Unlike conventional card payments where you have to input data manually, either by swiping or typing your details into a website, mobile payments are automated. You wave your card over the NFC reader, then the seller hands you the phone and you type in your PIN. Nobody has your credit card data but you, so it’s safer.

Mobile phones have faster processors and networks than more bulky technology, so non-contact payments are much faster than regular payments. The feedback is instant, and some merchant processors offer mobile NFC software at no extra charge.

It saves sellers the hassle of carrying additional equipment like portable card readers. This is helpful for businesses like plumbers, electricians, delivery personnel, or door to door sales teams. They already have their hands full with invoices, goods, and gear, so it helps to have one less gadget to carry.

With NFC, they can accept and approve payments right on their phones. Some providers offer non-contact payment systems that don’t need a PIN, which can be risky. Confirm that the merchant processor you’re using incorporates verification in the non-contact system. For more information about contactless mobile payments or to sign up for a merchant account, please call (888) 924-2743 or go to


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