Contactless Payment: learn How to Use Your Smartphone

As we move further into the digital age, traditional methods of payment are being replaced by more advanced technology. The contactless payment method, introduced in France from 2012 and known as “paiement sans contact”, has revolutionized consumer habits and has been steadily gaining momentum since its arrival. This article aims to delve into this fascinating world, exploring how you can make the most of your smartphone for contactless payments.

Understanding Contactless Payment via Smartphone

What is Contactless Payment ?

Contactless payment involves a smartphone or bank card equipped with Near Field Communication (NFC) technology carrying out transactions without direct contact with the payment terminal. By emitting very short-range radio waves, devices can communicate when they are within a few centimeters of each other.

Main Methods of Contactless Payment on Smartphones

• Online Purchases: Using e-commerce platforms from the smartphone.
• Mobile Transfers: Sending money from one person to another via a dedicated mobile application.
• In-store Purchases: Using the smartphone to pay directly at a merchant’s store, in the same way as using a contactless bank card.

The versatility and convenience offered by these various methods have significantly contributed to their popularity among users. But how does this innovative technology work ? Let’s take a closer look.

How NFC Works on Your Phone

The Role of NFC in Mobile Payments

NFC is integrated into almost all smartphones produced since 2016. Devices equipped with this technology can establish wireless communication within an extremely close range, enabling instant contactless transactions.

QR Code vs NFC: The Two Main Vectors of Mobile Contactless Payment

While NFC and QR codes are the primary drivers for mobile contactless payments, several applications make this process even easier. Let’s explore some of them next.

Popular Mobile Payment Apps

The Rise of Mobile Wallets: Google Pay and Apple Pay

To use apps like Google Pay or Apple Pay, users need to download the app and add and verify a bank card. The phone can then be brought close to the payment terminal to carry out the transaction. Today, these apps are available in all stores equipped with contactless terminals.

Dedicated Apps for Money Transfers

In addition to traditional mobile wallets, there are also numerous apps dedicated specifically to money transfers between individuals, offering an easy way to send money on the go.

Having explored some of the popular applications used for contactless payments let’s now understand how we can set up and use these services efficiently.

Setting Up and Using Google Pay or Apple Pay

Steps to Set Up Google Pay or Apple Pay for Contactless Payments

Please note that the following steps may vary slightly depending on your device:

• Open the app store on your device (Google Play Store for Android devices; App Store for iOS devices).
• Type “Google Pay” or “Apple Pay” into the search bar and download the appropriate app.
• Open the app and add your credit or debit card information. This will usually involve taking a photo of your card and manually entering any extra details.
• Verify your card following the instructions given. This typically involves receiving a verification code via text message or email, which you then input into the app.

How to Use These Apps for Contactless Payments

Once set up, using these apps is as simple as unlocking your phone and holding it near the contactless reader at checkout. The transaction should process almost instantly – no need to even open the app.

Safety is a crucial aspect when making online transactions of any kind. Let’s move on to discuss some essential security tips for mobile payments.

Mobile Payment Security: Essential Tips

The Importance of Monitoring Transactions

Although contactless payment is generally considered secure, users should still regularly monitor their transactions and choose reliable payment terminals. Most banks provide information about this payment method’s security and usage conditions.

Tips for Safeguarding Your Mobile Payments

• Password Protection: Ensure your phone and payment apps are protected by strong passwords or biometrics like fingerprints or facial recognition.
• Update Regularly: Keep your device and apps updated. Updates often include patches for security vulnerabilities.
• Avoid Public Wi-Fi: Public networks can be less secure, making it easier for cybercriminals to intercept data.

We’ve covered quite a bit about setting up contactless payments on our phones and ensuring they’re secure but what are the pros and cons of using this technology ?

Advantages and Disadvantages of Mobile Contactless Payment

The Upside of Using Mobile for Contactless Payments

Contactless payments have several advantages, including:

• Speed: Transactions are carried out almost instantly.
• Simplicity: No need to enter a code for each payment.
• Security: NFC communications occur within a very short range, thereby minimizing fraud risks.

Potential Downsides of Mobile Contactless Payments

Despite these advantages, there may be some drawbacks to consider:

• Battery Dependency: If your phone battery dies, you won’t be able to use mobile contactless payments.
• Limited Acceptance: Not all merchants accept mobile payments yet. Although this is becoming less common with the growing popularity of this payment method.

No system is perfect and understanding the potential issues is crucial. Speaking of issues, what should you do if something goes wrong ?

What to Do in Case of Trouble or Theft

In Case Your Phone Gets Lost or Stolen

If you lose your phone or it gets stolen, take immediate action. Most payment apps allow you to remotely deactivate your account or prevent the app from making transactions. It’s also recommended to report the incident to your bank promptly.

If You Encounter Issues With Transactions

If you see an unfamiliar transaction on your statement or have been charged the incorrect amount, contact your bank immediately. They can help investigate the issue and rectify any errors.

As we wrap up, let’s summarize the key points we’ve covered in this article.

The contactless payment method, with its ease of use and added convenience, has become increasingly popular. By understanding how to use our smartphones for these transactions, we can take advantage of this technology in a secure manner. Despite potential downsides such as battery dependency and limited acceptance, the benefits – including speed, simplicity and enhanced security – often outweigh these concerns. Finally, knowing what steps to take in case of trouble or theft will help ensure a safer mobile contactless payment experience.