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Around the world, contactless payments have become the preferred method of making in-person purchases. In 2021, around 90% of all credit and debit card transactions were made with contactless cards. Through contactless payments, consumers can enjoy the convenience of making purchases in person without the need for a credit or debit card. They can also use their smartphones to pay for their purchases. However, there are some disadvantages to this type of payment.


Contactless payments are generally convenient for consumers. But they also help merchants by making transactions faster and more effortless. This is because they help enhance the in-store experience. For both merchants and consumers, contactless payments offer various advantages, such as fast and efficient payments, the ability to use smartphones instead of credit or debit cards, and the likelihood of fewer long lines during busy times. 

They also help minimize the risk of unauthorized purchases and incur no processing fees. A growing number of consumers prefer to make payments using contactless cards. Merchants who accept preferred payment methods are more likely to retain their customers. 

Merchants can also use Near Field Communication (NFC) technology to enhance their customer loyalty programs by allowing them to send personalized digital vouchers to their customers. New businesses can also benefit from the lower barrier to entry by accepting contactless payments due to the increasing number of mobile payment systems.


Despite the advantages of contactless payments, there are still some drawbacks to this type of technology. This payment method is viral among consumers.

Security Concerns

One of the biggest concerns about contactless payments is the potential for unauthorized purchases due to the need for more security features such as a signature or PIN. With the increasing threshold for contactless payments, thieves and fraudsters can easily make large purchases with stolen or lost cards. In addition, hackers can easily modify the NFC tags of intelligent devices to allow unauthorized access to their users’ private information.


Although the new limit on contactless payments is generally sufficient to cover most purchases, this technology cannot be used for more significant transactions. Also, users can’t make contactless payments using their smartphones if they have a low battery charge.

Not Everyone Likes It

Many older consumers still need to be convinced to use contactless payments. They see them as a risky technology that carries a high-security risk. Also, they may need to gain the necessary technical knowledge to use NFC on their devices.