The COVID-19 pandemic has greatly affected socio-economic well-being. It has been one of the biggest digitalization drivers worldwide. Digital payments, especially contactless payments, have emerged as an unerring for businesses and businesses in the new normal post-COVID-19.
FREMONT, CA: Contactless payments have identified as an effective solution for all businesses. They enable businesses to grow while also ensuring their safety in the face of the coronavirus pandemic. In general, two types of contactless payments are accepted. They are as follows.
When a user uses a contactless card to make a transaction, the card establishes communication with a point of sale (POS) terminal via NFC or RFID (radio frequency identification). The card initiates a unique code for each transaction, making the process safer. Since there is no signature or PIN requirement, contactless payments come with a transaction limit known as the Cardholder Verification Limit (CVM). CVM is an effective way of protecting user accounts. As contactless payments gain popularity, financial institutions worldwide are increasing their CVM limit to enable customers to make transactions during lockdowns with utmost safety. MasterCard is already working with regulators to improve the CVM to meet customer needs and boost the trend of contactless payments.
Users can make contactless payments using e-wallets, electronic wallets, or mobile wallet solutions easily, securely, and conveniently. Due to the tokenization process, mobile wallets are one of the most secure payment methods available. All sensitive data is replaced with a token or value during this process. This value or token protects sensitive data such as credit card numbers and other information susceptible to fraud and scams. Additionally, this means that the device will never store the actual account number. Tokenization in conjunction with radio-frequency identification enables users to conduct transactions quickly, efficiently, and securely.