What are contactless mobile payments?
Contactless payments are financial transactions that happen digitally via your mobile. They’re usually accessed through a contactless payment app, known as a mobile wallet. This stores your credit and debit card details, which can be accessed by your smartphone.
How to set up and use contactless payments on your mobile
Androids and iPhones have slightly different set-up processes.
- If you have an Android phone, you will need to set up Google Pay.
- If you have an iPhone, you will need to set up Apple Pay.
- You can check to see if your phone can use contactless payments; it must have a special SIM or a sticker/tag attached to the back. If you’re in doubt, contact your mobile provider. Some older devices may not be able to support contactless payments. Payments are based on near-field communications (NFC) technology, so you need to physically be within range of the payment reader (for example, a card machine) in order for it to work.
Once your device is set up and you’ve installed the app, it essentially lets you use your device as you could a credit or debit card.
Is there a charge for using contactless mobile payments?
There’s typically no charge for using the contactless mobile payment system itself. However, you may be subject to other charges, like for mobile data or currency conversion charges.
How many times a day can I use contactless mobile payments?
There’s no limit to the number of times you can make contactless mobile payments in a day. There is, however, a limit to the amount you can spend using contactless in a day, which is typically £30. If there’s an item you want to pay for which costs over £30, you may still be able to use contactless, but you’ll need approval from the retailer and your bank.
You could find that your bank may ask for you to enter your PIN to ensure it’s you every now and then. This is just to make sure that it’s you using your card, and not anyone else.
Can I use contactless phone payments on public transport?
Yes – especially if you’re travelling around London. TFL’s system means you can pay with your smartphone for your journey. Make sure you have enough battery on your phone for the entire journey; if your phone dies and you can’t use it to tap out, you may be charged the maximum fare.
You can also use contactless payments on Manchester’s tram network.
Bear in mind that if you have a non-UK bank card, your payment may not work or you may be charged overseas transaction fees. It’s best to check with your bank before you start using contactless phone payments in the UK.
The benefits of using contactless mobile payments
The benefits to paying online with mobile include:
- Convenience, especially if you don’t want to carry your wallet around you’ve left it at home
- It’s faster than counting out cash and change
- You don’t have to worry about carrying physical cash
- It’s secure. Your card’s details aren’t stored on your phone but in the digital cloud, so thieves can’t access your details even if they’ve got access to your phone.
Contactless mobile phone payments and fraud
As with any other digital transactions, mobile payments come with risks as well. The following issues are rare, but they can happen:
If you decide to use contactless mobile payments, find out more about safeguarding yourself against contactless fraud to help you use contactless mobile payments more safely and securely.
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FAQs
A contactless payment is a wireless financial transaction in which the customer makes a purchase by moving a security token in close proximity to the vendor's point of sale (POS) reader. Popular security tokens for contactless payment include chip-enabled bank cards and smartphone digital wallet apps.
What are the contactless payment solutions? ›
Contactless payment is a secure payment method using a debit or credit card, smartcard, or another payment device by using RFID technology and near-field communication. To use the system, a consumer taps the payment card near a point-of-sale terminal equipped with the technology.
What is great about paying with contactless? ›
Quicker transactions and shorter queues at the checkout are the most significant advantages of contactless payment. Handling cash is not a concern at the checkout. You also don't have the hassle of punching in your PIN.
Is contactless mobile payment safe? ›
Contactless credit cards are currently among the safest forms of payment. It's incredibly difficult for a hacker to recreate the one-time code that contactless credit cards create for each transaction. Compared to magnetic strips that are more easily duplicated, contactless credit cards are much more secure.
What are examples of contactless payment? ›
Some debit and credit cards have NFC technology that allows the customer to pay for items by tapping or waving their card above the payments reader. These types of cards are called contactless payments cards.
What apps can I use for contactless payment? ›
Top NFC Mobile Applications for Payments
- Apple Pay App. You may load your credit and debit cards into the Apple Pay mobile wallet software on iPhones and the Apple Watch. ...
- Square Wallet App. ...
- Google Pay App. ...
- PayPal App. ...
- Lifelock Wallet App. ...
- Samsung Pay App. ...
- Venmo Pay App.
Question of the Day: What is the #1 contactless (mobile wallet) payment method? Answer: Apple Pay. Apple Pay 77% of mobile wallet transactions. Samsung Pay 17% Google Pay 6%
What is the best contactless payment? ›
Google Pay, Apple Pay, and Samsung Pay are strong contenders in this area. Apple has outpaced all other comers in in-store contactless payments.
What are the negative effects of contactless payments? ›
Because contactless payments require neither PIN nor signature authorisation, lost or stolen contactless cards can be used to make fraudulent transactions.
Do banks charge for contactless payments? ›
There are no additional fees for using your contactless card.
If you make several payments in a row, we'll ask you to enter the card's PIN. This can help protect your account if your card is stolen, too. No one can spend more than the card's contactless limit in a single contactless transaction.
How do I know if my phone has tap to pay? ›
To prepare your Android device to use Tap to Pay: Ensure your device is running Android 9 or higher. On your device, navigate to Settings > Connections > NFC and Contactless Payments, then toggle ON Use NFC.
What apps can I use to pay without a card? ›
To pay in stores using your phone, you'll need to make sure Google Pay is downloaded and set up on your phone first. Get the Google Pay app on your Android phone. It only takes a few minutes to set up Google Pay on your phone.
How does mobile contactless payment work? ›
Understanding contactless technology
Contactless transactions are powered by either radio frequency identification (RFID) or near-field communication (NFC) technology. When making a purchase, these radio waves share your bank account, contactless card, or phone app details with the merchant's payment reader.
How do you use contactless mobile? ›
Android Settings for Tap to Pay on Android
Ensure that your phone is running Android 9 or later. Navigate to your device Settings > Connections > NFC and Contactless Payments. Toggle on NFC to enable. Toggle off NFC to disable.
How do contactless payments work? ›
A contactless payment system uses radio frequency identification (RFID) technology. The card contains a chip and a radio antenna. This antenna picks up the signal when it's close to a card reader and allows the transmission of information to the point-of-sale terminal.
How do I know if my phone can make contactless payments? ›
You can check for NFC settings on your Samsung Android device by looking in the settings app > connections > tap NFC and contactless payments.
How do I know if my card is contactless? ›
Using tap to pay can be a more convenient and secure way to make purchases than swiping or inserting your credit card. Credit or debit cards that have contactless technology feature a symbol of four curved lines that look a bit like the Wi-Fi symbol turned on its side.
