Did you know millions of people spent billions of dollars alone through contactless transactions in 2024? Contactless payments have quickly become the go-to payment method when shopping in person.
If you have seen people using their phones or wearable devices in the checkout lane and wonder what it is all about or how to get started, this blog will help you. You will learn the basics of contactless transactions. You will also get five tips for safely using contactless payments while shopping. Safely is the operative word, as changing and trusting new payment methods can be hard.
What Are Contactless Transactions?
Traditional payment avenues include cash or inserting a credit, debit, or gift card into a terminal to be read and processed. A contactless transaction is when you don’t physically insert or swipe your card in a payment terminal.
When making a mobile transaction, you’ll use a digital wallet where you can safely store your secure credit or debit cards with an app. This lets you pay people easily using an online app or a mobile reader. A big benefit is that you don’t need to carry your physical cards.
Venmo, Samsung Wallet, Google Pay, and Apple Pay are examples of top payment apps on mobile and wearable devices. Many wallets may store other options like transit passes, tickets, or ID cards. You can also scan a QR code with your phone’s camera when placing your order and paying via an online menu app.
Are My Transactions Safe Using Mobile Contactless?
There is often debate about whether contactless transactions are more secure than contact-based transactions. With mobile wallets and near-field communication (NFC) technology, you can make secure, touch-free payments. Simply tap to pay or hold your mobile device near the payment terminal.
Digit wallets also offer users multiple protections to keep each transaction safe, protecting the wallet through tokenization technology. Any credit or debit cards added to the wallet are encrypted first. Your information remains safe if hackers target the merchant since merchants never access it, which is a huge plus.
Essentially, the digital wallet quarantines your wallet from only interacting with specific apps, removing the threat of malware wreaking havoc on finances should your phone be compromised. With added multi-identification options and payment permissions, digital wallets work hard to protect you wherever you shop. As with contact transactions, exploring all means to protect your information and bank balances or credit is a wise investment in your time.
5 Tips for Using Contactless Transactions.
Regardless, if you have been using digital wallets for a while or are just starting, here are five of the top ways to protect your transactions while you shop contactless:
- Use all security features offered through digital wallets, credit cards, or payment apps. Adhering to security features will save you money in the long run.
- Monitor your digital wallet card transactions. You can review your transactions in your wallet. If you find any suspicious transaction, report it immediately.
- Keep your phone charged. It’s nice not having to carry your credit cards, but no one wants to get caught with a dead phone when the tab comes around.
- Device security is smart security. Don’t get lazy when protecting your money. For instance, password-protect your mobile phone with strong security measures and follow recommendations for the strongest protection.
- Plan for everything. One stipulation is that the merchant does need to accept mobile payments or offer smart chip readers. If no contactless options exist, be prepared to go old school.
As with anything new, you must change your habits. Where you start depends on your comfort level with contactless card payments versus mobile. Once you choose the right tools and processes for your needs, you can begin reaping the benefits.
HomeTown Bank Has Your Back.
Like any payment method linked to your bank account, we prioritize security to help protect your purchases. To stay current on evolving security standards, we issue the latest smart chip credit and Mastercard debit cards designed for secure mobile payments using radio frequency identification (RFID) or near-field communication (NFC) technology.
Our credit cards offer local convenience, global acceptance, and valuable benefits like cell phone protection, mobile payment compatibility, fraud monitoring, and zero fraud liability. Plus, you’ll receive SecurLOCK™ email and text fraud alerts for added security. Enjoy peace of mind with a card that works for you—wherever you go.
We know change can be challenging, but some change is good. Transition at your own pace, knowing we’re here to support you.
You don’t have to go alone. Stop in at your local HomeTown Bank; we’d be happy to help answer your questions and get you started on what is proving to be a reliable and entirely safe way to shop or conduct business.
