It may be hard to believe, for some, that less than a generation ago almost all of our payments were made using cash. Not anymore! Technology has changed that and now there are many ways in which we can make contactless payments. Here we take a look at the technology and its benefits.
Contactless Debit and Credit Cards
Whether we are shopping on the high street, grabbing a bite to eat or a coffee to go, the most common payment method is now contactless debit or credit card. Just one flash of our bank card across a payment terminal and the transaction is made – it’s easy and convenient. And as there are restrictions on the amount you can pay for using contactless cards, it is also relatively secure.
Contactless tech was introduced in the UK in September 2007 and last year it is estimated that around 13.2. billion debit card payments were made. There are, however, many more ways in which payments can be made.
The Rise of Fintech
Financial technology (fintech) gave us contactless payments, but it is perhaps more commonly associated with new ways of banking, investing and making payments online.
The likes of PayPal, Bitcoin and new online banks such as Think Money are all products of the fintech revolution and highlight the growing amount of options open to the public when it comes to how they save and spend.
Much of this technology uses blockchain technology and this is extremely secure. So much so, that it is being adopted by many of the more traditional financial institutions as they too begin to innovate and move forward.
Mobile and Wearable Technology
Other ways in which we can make contactless payments come in the form of mobile and wearable technology. Phones are the best example and there are a number of apps that we can download, configure and use to pay for goods.
Apple Pay is an app that you can use on your iphone or on an Apple watch. Once you have downloaded the app, all you have to do is enter your bank details and then it is ready for use. It works in a similar way to a contactless debit card, except once it has connected with a payment terminal you need to verify the payment by pressing a button on the phone.
There continues to be huge advances in the way we go about our financial lives, options are aplenty and it just remains for us to decipher what new tech will work best for us.
