You’ve probably seen this take place in a restaurant, supermarket or even a vending machine – the cashier rings up your purchase and you tap your credit card that is contactless on the payment terminal. It might appear like magic, but it is an innovative method of payment that could increase the efficiency of your business and decrease friction with customers.

Near-field communication (NFC) is a type of technology that is used to make the process work. When you tap your card near the POS system that is prompted to pay, the information is transmitted electronically from the chip of the card to your account. The system will then verify your transaction by ringing or checking, or flashing an green light.

Contrary to traditional cards with magnetic stripes, the information on contactless cards is encrypted which makes it difficult for hackers to use a skimmer device to steal data and create fraudulent transactions. Contactless payments are a popular choice due to the fact that they reduce risk for both you and your customer.

Modern debit and credit cards have NFC which means you can pay at a variety of establishments that accept contactless payments. You can also connect them to mobile wallet applications and digital payment platforms that allow you to make contactless payments using your mobile device, like Apple Pay, Google Pay or Samsung Pay. These mobile apps are ideal for those with multiple cards and can be used an alternative or in addition to your credit or debit read what he said card.