Making payments has always necessitated physical contact between the payer and recipient from the past feels Bahaa Abdul Hussein. Whether it is cash used or card, the currency/card is physically handled by both parties (and others). When the world was affected by the COVID pandemic, this became a big concern. There was a serious risk of virus transmission through physical contact. There was a greater need for contactless payments and this was fulfilled through digital wallets.

Digital wallets and contactless payments

Unlike physical wallets, digital wallets do not have cash or cards stored in them. A digital wallet is an app on a device that can be used to make payments. While this is convenient and easy to use, it also helps in ensuring contactless payments. The need for a physical contact between the recipient and the payer is completely eliminated when digital wallets are used.

Here is how contactless payments work using digital wallets:

  • While making a payment, you can open the digital wallet app on your device and log in to it.
  • The seller usually would have a QR code displayed physically or on their payment terminal screen. You can use the digital wallet app to scan the QR code. The entire process can be done without physical contact.
  • Once the code is scanned, you can authenticate the transaction by using a PIN, password, or OTP (depending on the wallet features). The amount is then debited from your bank account instantly.
  • Apart from QR Codes, NFC or Near Field technology is beneficial for contactless payments. Your mobile or other device needs to have NFC enabled in it. The payment device or terminal would also have NFC. You can just wave your device or bring it close to the payment terminal. Both the devices then communicate through NFC and payment can be made instantly.
  • Bluetooth can also be used for contactless payments, but this is not preferred due to the risks involved in the technology.

Contactless payments are secure, and it is almost impossible for hackers to access your digital wallet. The enhanced safety explains why digital wallet payments have become popular.

Conclusion

Digital wallets can be used to make contactless payments. Technologies like NFC and QR codes make this happen seamlessly. The entire process is easy, convenient, and most importantly ensures there is no need for any physical contact. It is more hygienic particularly in times when people are concerned about infections. Above all, it fast and speeds up the payment process.

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