Across the globe, as people slowly emerge from their COVID-19 quarantines, and wonder what the future holds, contactless payments start to make a whole lot more sense.
Contactless payment is a secure payment method that uses RFID technology or NFC (near-field communication). To use the system, a user taps their debit or credit card, smartcard, or another payment device near a point-of-sale terminal equipped with the technology. It doesn’t require the user to input a PIN.
“As customers increasingly demand expediency—and now, assurances that store clerks and bank tellers will stay physically distant—more brick-and-mortar businesses are turning to “tap-to-pay” systems,” reports Stephanie Walden in Forbes.
Recently, Fidesmo, a Swedish tech company announced joining forces with Mondaine to add wearable payment service, Fidesmo Pay to the Mondaine’s collection. This opens up for thousands of cardholders, from several European banks in multiple regions, to be able to make contactless payments with the Mondaine PayChip™. The Mondaine PayChip™ can be inserted into a specially developed strap with a pocket, or into a special strap loop, which can be added to many Mondaine watches. The patented system enables the consumer to swap the pay chip in sim card size from one watch to another one very quickly and easily – a world exclusivity. By holding the watch closely to any terminal that supports contactless payments, the payment is more convenient than ever before.
Fidesmo makes it possible to connect contactless services, such as payment, public transport tickets, office/hotel and car keys, to both passive and active devices.
In other news, Dawson Racing announced its association with Atlanta, Georgia-based Square 1 Flex for its new custom Visa payment-enabled e-wallet and Dawson Racing themed wearable device. As consumers increasingly look for touchless payment opportunities, the new offerings will allow fans to complete transactions more safely on or off the track, while earning points through the new loyalty rewards program.
Visa, the world’s second-largest card payment organization, partnered with Planeta Informatica, to launch a new technology that enables public transit operators worldwide to implement contactless payments faster and easier than ever, and for a much lower cost. Transit operators using the new Visa Secure Access Module (SAM) will find it easier to start offering riders the ability to tap to pay with a contactless card, phone or wearable device, without the need to replace current turnstiles or terminal hardware.
Despite the enticing features and advantages offered by contactless payments, there are some hurdles to overcome such as its high cost and limited battery life of the devices. However, a growing number of financial services are now offering contactless payment services, which has opened new avenues for market players.