The Future Of Payment: Contactless Payment Cards
Last year has been a game-changing year for payment cards. The newly implemented PIN-based payment cards have been a move towards the right direction in preventing payment card fraud.
Today, almost all new credit and debit cards come with contactless payment feature. A contactless payment feature allows you to make payment by just waving or tapping your contactless card over a machine, so you won’t need to enter your pin. This feature lets you make purchases of up to RM250 in a single transaction.
How do contactless payment cards work?
Contactless credit and debit cards use a combination of traditional Europay-MasterCardVisa (EMV) chips with a contactless chip and radio frequency identification (RFID) antenna. To use the contactless feature, the user must tap or wave the card within 4 to 10 centimeters from the retailer’s card reader.
The most common contactless technology providers available globally are Visa payWave and Mastercard PayPass.
Are contactless cards safe?
Imagine making payment at the grocery line without having to bag your groceries, fumble with cash and also wait for the change from the cashier. Sounds easy, but what about the security?
These cards are equipped with safety features such as an embedded chip that generates a dynamic code for every transaction and important information on the card cannot be e-pickpocketed.
These safety features ensure that the cards cannot be cloned or used for unauthorised transactions by fraudsters, said Bank Negara Malaysia.
However, just like you would keep any of your payment cards safe, you are also advised to keep your contactless payment cards safe and not share your PIN with anyone. For added peace of mind, check your bank statement regularly to make sure there is no fraudulent activity.
If you see any dubious transactions, report this to your bank immediately.
The rise of contactless payment cards
The contactless payment feature helps consumers to save time and trouble when making payments. It is a win-win feature for both consumers and retailers, as retailers are also able to reduce waiting queues and cash handling. Between January and April 2018, a total of 143.2 million transactions with amounting to RM44 billion were made using credit cards, while debit cards recorded a total of 71.8 million transactions worth RM12.3 billion.
Contactless payment in Malaysia, be it via Visa Paywave or Mastercard PayPass, has risen by 142% to RM1.33 billion in 2016, from RM547.2 million in 2015.
Contactless payment cards definitely make our lives easier. They make transactions quicker because we don’t have to enter our PIN when we are making payments. With more people adopting contactless payments, the queue at the payment counter will also move much faster.
You can also use a mobile phone or smartwatch for contactless payments, which means you don’t have to dig around for your purse or wallet.
How do I get a contactless payment card?