Contactless Payment

Contactless payment systems are credit cards and debit cards, key fobs, smartcards or other devices that use radio-frequency identification for making secure payments. The embedded chip and antenna enable consumers to wave their card or fob over a reader at the point of sale. Some suppliers claim that transactions can be almost twice as fast as a conventional cash, credit, or debit card purchase. Because no signature or PIN entry is typically required for purchases under US$25 in the US and under £20 (£15 prior to 1 June 2012) in the UK, some research indicates that consumers are likely to spend more money due to the ease of small transactions. MasterCard Canada says it has seen "about 25 percent" higher spending by users of its PayPass-brand RFID credit cards.