How does Contactless payments Work?

Contactless Payments use a combination of NFC technology and encryption to facilitate transactions. NFC technology allows two electronic devices to communicate with each other when they are in close proximity. In the case of contactless payments, the electronic devices are the payment card or smartphone and the payment terminal. To make a Contactless Payments the user simply needs to hold their payment card or smartphone near the payment terminal. The payment terminal will recognize the device and initiate communication using NFC technology. The payment information will then be transmitted securely between the two devices using encryption and tokenization technology. Once the payment is approved, the transaction is complete.