Visa, Mastercard and China UnionPay Contactless Payments.


Developed countries have tendency to use payment cards rather than cash. It is easier, faster and more comfortable, so cardholders enjoy such an approach. Everyday purchases are performed faster in this way.

Today's most demanded technology is NFC (Near-field communication) - innovative elaboration that allows to perform contactless transfers. It provides payment possibilty in shops, supermarkets, bars, restaurants, hotels - and all this just in one touch. To do this one needs to place a card with a special in-built microprocessor close to a device that scans the information from the chip. There is no need in entering codes or any other data. Time for operation reduces suffucuently, so one can pay any service or good in just few seconds.

What is also important, is that amount of payment that can be confirmed in such a way is limited. Serices and goods available for purchase as well as the limits for transaction are set directly by a bank that issued a card. In case the allowed limit is exceeded, confirmation is done with other methods.


How does it work.


The majority of payment cards are issued and serviced by Visa and MasterCard companies. They use certain radio frequencies in their operation. That's why these cards ecquiring is possible by means of only those terminals and devices, adopted for these payment systems. In order it could work special chip able to transmit signal and data is installed inside the card.

The first one who presented a contactless technology called PayPass was Mastercard in 2002. Today, this technology is applied in payment cards for contactless payments all over the world.


Speed and flexibility


Contactless payment authorization allows to save time for small purchases, for example, in shops or superamrkets, considerably. To perform such operation there's no need to enter the code, effecting to almost instant purchase making. For sure, it's advantageous for all parties: for cardholder, seller and bank.


UnionPay QuickPass technology


UnionPay in cooperation with 20 commercial banks of China presented own contactless payments technology. For this reason QuickPass mobile application has been implemented, that provides the high speed performance of operation and top security level. QuickPass is the result of partnership of UnionPay alongwith the leading chinese developers. By now this service already works in more than ten thousand units in about 25 arge trade networks of the world. It is expected that technology will be developed actively through joining of more and more different companies. QuickPass runs in Android and iOS smartphones and tablets. Once the application is activated it can be used for services and goods buying. The payments themselves are performed rapidly and in just one touch.


Security


Another advantage of touchless authorization is that such payments are accepted not only by terminals and specia devices but also ATMs. Moreover this technology conforms all the security standards. The safety issue is of the highest priority both for bank and user.

There is no need to pass the card to cashier or seller - and it's also a great benfit. Buyer fully controls this process by himself, that allows to grant the maximum safety level. Furthemore, as soon as the operaion is performed without any contacts, the service term is longer than for usual cards.

NFC know-how is advantagous not for users only. It allows to plan the process of goods and services retail more effectively, redueces the processing and ecquiring time, that is also of great importance. This equates to rise the efficiency level for different systems and provide the higher competency advantage.


Deficiencies


Despite variety of advantages, application of contactless payments still has some problems. The main is concerned with absence of extensive infrastructure for NFC implementation. Creating the terminals network requires huge investments, that's why banks and companies are wary with spending their own funds.

Another issue happens due to a big number of speculative activities about the fact that the process is based on radiosignal transmission, and it may cause the reason of personal data leakage from customers' cards. That's why a lot of people are sceptic about non-touch payments. However it should be mentioned that a specieal one-time code is generated for each transaction, which further usage has no sense. So even if your data is cheated then scammers won't be able to use it twice.

Finally, companies that implement noncontact payment technologies put the issue of system functionality in top priority. Therefore there is no real reason to worry about the safety of such authorization method. In addition, it is necessary to take into account that the technology is relatively new, so it's further development will allow to make it's application simplier, easier and above all safer.