What is contactless payment system?
A contactless payment system is an innovation in point-of-sale payments that does not require traditional transactions used in either cash or traditional credit or debit card designs.
Connectivity is often achieved through high frequency devices. Users only need to place a card or other item near a till hardware to complete the transaction. No PIN numbers or other verification are required.
Due to the less stringent security of the contactless payment system, it has been slow to adopt it in traditional retail stores. Companies like McDonald's have been experimenting with contactless payment systems for a number of years. Innovators like Apple now offer contactless payment systems.
Another good example of a contactless payment system is an RFID device, which is commonly used for motorway or local toll systems. Contactless payment systems have recently been introduced into road toll systems because the convenience they offer eclipses security concerns. However, the same philosophy has not yet been adopted in general retail where many buyers and sellers prefer to use a card with qualifiers such as PIN numbers.