Know About Contactless Payments and Its Quick Set Up on Your Smartphone

Completing a contactless transaction when paying for any goods or services can be a safer way to go about it. This was popularised after the pandemic and includes the usage of credit and debit cards during payment offline, allowing you to pay without any physical contact. 

There are many options to make effortless payments through your smartphone. It has become the new norm today, yet many are unaware of its full potential. By having a better understanding of how this works, you can make payments without any hassle.

Brief Introduction to Contactless Payments 

It is a safe and secure method of making payments without cash. You can use your chip-enabled cards, such as credit and debit cards, for payment. While making a contactless payment, you can tap or wave your card over the card reader. 

You can make payments faster without providing your PIN using such payment methods. This can enhance your checkout speed while paying toll tax, paying for parking and more. Due to an increase in the adoption of contactless payments, the RBI has increased the payment limit transactions from ₹2,000 to ₹5,000 without the need for a PIN.

Benefits to Keep in Mind 

It is commonly misunderstood that contactless payments may pose a security threat, revealing the card’s information. The truth is that it is difficult for unauthorised logins as the card’s data is encrypted. This offers you more safety in carrying out such payments.

Fraudsters can steal your information from your magnetic chip by cloning it but tapping your card protects you against handing over your card. Additionally, swiping a card manually and entering your card details is a hassle and increases the risk of fraud. Thus, contactless transactions can cut down the processing time while ensuring better protection. 

Another benefit of such payments is that you also pay using your smartphone or mobile. This is extremely beneficial when you want to make an urgent payment but forget your card at home. This involves using your UPI ID and an app that is connected to your bank account. You only have to scan the QR code using your smartphone and complete the transaction by entering the OTP or PIN on your own device. 

Also Read: How to Create UPI ID?

Mechanism of Contactless Payments 

Non-UPI contactless payments use radio frequency identification technology embedded in a card’s microchip. This makes the process successful without needing the personal identification number. When you hold the card near the point-of-sale terminals, the merchant identifies this with a special symbol.

The symbol resembles a wifi logo. Holding the card near the terminal transmits information electronically from the card to the bank. After accepting the tap, it signals success with a beep or light. The bank analyses the transaction and upon approval, the transaction is completed.

How to Set It Up on a Smartphone? 

Now that you know the process and meaning of contactless transactions, you can use this facility smartly. To get going, you can set it up on your smartphone. This one-time set-up will enable you to access quick and safe transactions with just a tap. Follow the steps to set tap-and-pay on your smartphone:

Step 1: Log in to your official net banking account or mobile application

Step 2: Select the ‘tap and pay’ option

Step 3: Enable the option

Step 4: Make it the default

Also Read: How to Identify Financial Fraud?

Contactless payments offer flexibility and security and may bring even more innovation to the fore in the near future. Today, you can combine the comfort of using credit cards with the safety and security of mobile phones via UPI. 

If you’re looking for a credit card that offers such convenience, the Fibe Axis Bank Credit Card can be a smart choice. It is India’s first numberless credit card that links to your UPI ID, so you can scan and pay in seconds.

What’s more, you earn a flat 3% cashback on entertainment, local commutes and food. Get complimentary domestic lounge access and fuel surcharge waiver discounts with this credit card, too. Download the Fibe App or register on our website to get the Fibe Axis Bank Credit Card today!

FAQs on Contactless Payments 

Are there limits to contactless payment transactions? 

Yes, there is a limit of ₹5,000 on contactless transactions without using a PIN. For a higher amount, you need to provide your PIN.

What should I do if a contactless payment fails? 

If your contactless payment fails, try a UPI app that is linked to your bank account. You can also get in touch with the financial company whose card you are using. 

How do I deactivate contactless payments on my card? 

You can deactivate it on your card by logging into your account and turning off the functionality. 

Can I use my contactless payment card with a damaged chip? 

No, you cannot use your card for contactless transactions with a damaged chip.