In today’s world, there is a lot of work going on without the touch of a human hand. From industrial factories to in-house modern electronics equipment is going to be controlled everywhere without the touch of hands. The touch of a hand that can bring about such a great danger as human death, perhaps mankind could not have imagined before COVID. Payment through card has also come touch less facility. Contactless payment is one such facility. What kind of contactless payment is actually? Payment without cash or swiping a card is called Contactless payment.
Simple Technology and Works Easily…..
Contactless payments are mainly made through the technology of Radio Frequency Identification (RFID) and near field communication (NFC). It uses short-range wireless technology to secure payments. It is completely secure payment method that can be done using debit or credit cards, smart cards, prepaid cards or other payment devices. This card can be used to make payments at pharmacies, grocery stores, restaurants, as well as merchants that accept contactless payments. But how does this card work and what is the procedure? Contactless payments will require both customers and merchants to have cards and devices bearing the EMVCo (EMVCo consists of members American Express, Discover, JCB, Mastercard, UnionPay and Visa) contactless indicator and symbol.
A contactless payment chip card equipped with a near-field communication (NFC) antenna will send the customer’s payment authorization when tapped on a payment-enabled device.
Introducing an innovative digital payment system ….
In July 2018, the Central Bank announced its identity through the issuance of a circular. Initially it was limited to credit cards. This payment system is gradually becoming popular among customers. Later in March 2022, it got approval to include this facility in debit cards and prepaid cards as well. The maximum limit of BDT 5000 per transaction on any EMVCo compliant credit card, debit card and prepaid card has been relaxed (Source: Bangladesh Bank). The new chapter of our country’s payment system has started with the approval of this innovative digital payment system.
A research on NFC technology of nine countries…
The Near Field Communication (NFC) Forum and ABI Research conducted a survey of 2,620 adult consumers on consumer attitudes, experiences and understanding of NFC technology that was published in July 2022.The survey was attended by USA, China, Japan, South Korea, UK, Spain, France, Germany, Italy and some surprising findings emerged from the survey (Source: NFC Forum).
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- 85% of respondents used an NFC contactless card or mobile payment wallet.
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- 95% of respondents used some form of “contactless technology” for paying for a product.
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- 48% of respondents used for paying for public transport fare payments.
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- 38% of respondents used for consumer product interaction.
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- 15% of respondents used for vehicle access.
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- 14% of respondents used for venue access.
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- 13% of respondents used for home or office access.
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- 11% of respondents used for appliance control.
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- 10% of respondents used for headphone / speaker pairing.
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- 8% of respondents used to tap posters or menus.
The survey also shows that the use of mobile wallets has “grown considerably” with Apple Pay and Samsung Pay. Apple Pay and Samsung Pay also recorded impressive usage growth and increases in uptake of 37% and 35%, respectively.
Developed countries of the world have already increased the use of this technology. People are using this technology in their daily activities. Although this technology is new in our country, its potential is not low. If this innovative technology is used in all areas, the service will be available very quickly. Above all, NFC technology has given Bangladesh the opportunity to enter another chapter in the world of technology.
Author: A S M Ahsan Habib, CDFP (a seasoned banker and Certified Digital Finance Practitioner)
Email: ahabib46@gmail.com