Contactless payments have rapidly become the go-to way for customers to pay. Whether it’s a card, a smartphone, or even a smartwatch, people now expect to simply tap and go. For businesses, adapting to this shift means faster checkouts, happier customers, and less time spent handling cash.
Contactless payments use near-field communication (NFC) technology to let customers pay by holding their card or device close to a compatible terminal. Instead of inserting or swiping, the transaction is completed wirelessly in a matter of seconds.
The system relies on EMV chip and NFC standards, which encrypt data and ensure every transaction is securely authorised. Once a customer taps, the terminal and their card or device communicate directly, confirming the payment almost instantly.
This technology isn’t just a trend but a global movement. Analysts project the total value of contactless payments will exceed USD 140 billion by 2029, while the market for NFC-enabled terminals is expected to triple to around USD 43.4 billion by 2026.
Here’s what happens during a typical tap-to-pay transaction:
To get started, you’ll need:
Contactless methods include tap-enabled debit and credit cards, mobile wallets, and smart wearables—all of which work seamlessly with modern payment systems.
Customers today want flexibility in how they pay. The more options you offer, the easier it is to make a sale, no matter where your customers come from or how they choose to pay.
Most debit and credit cards issued by major networks—like Visa PayWave, Mastercard PayPass, and American Express Contactless—come with built-in NFC chips. These allow quick “tap and go” payments that don’t usually require a PIN for smaller transactions. For higher amounts, a PIN or verification may be needed.
Digital wallets allow customers to store card details securely on their phones. Payments are verified through biometric authentication like a fingerprint or facial scan, adding an extra level of protection.
For merchants, mobile wallets speed up transactions and reduce declines, as authentication happens instantly on the customer’s device. Most modern POS terminals already support these wallets without any extra configuration.
Smartwatches and fitness trackers like Apple Watch, Garmin Pay, and Fitbit Pay make it possible to pay without reaching for a wallet or phone. These are especially popular for quick purchases in cafés, public transport, and retail shops. If your terminal supports NFC, no additional hardware is needed.
QR-based payments allow customers to scan a code with their phone to pay directly. They’re especially common in Asia through platforms such as Alipay and GCash, and are increasingly used worldwide. For small merchants, this method offers a low-cost, simple way to accept cashless payments without investing in specialised terminals.
Tap-to-phone, also called SoftPOS, turns a smartphone into a payment terminal. Merchants can accept card payments directly on their device without needing a separate reader. Solutions like Tap to Pay on Android or iPhone make it ideal for small businesses, delivery services, and market traders.
Accepting contactless payments makes your business more efficient, secure, and aligned with modern customer expectations.
Transactions take seconds, keeping queues short and reducing frustration—especially in busy environments like cafés, restaurants, and retail shops. A faster checkout often leads to happier customers who are more likely to return.
Digital payments are now mainstream. Research shows 71% of shoppers prefer contactless options, and among Gen Z and Millennials, 9 out of 10 have used contactless payments recently. Retailers offering tap-to-pay options report that customers are up to 45% more likely to come back—proof that convenience builds loyalty.
Going contactless also saves time behind the scenes. Fewer cash transactions mean less time counting tills or making bank runs. Each tap uses encrypted, tokenised data, which prevents sensitive card information from being stored or shared—reducing the risk of fraud.
Getting started is straightforward. Here’s a step-by-step guide:
Once your system is running, consistency and reliability are key. Here’s how to keep things running efficiently:
Adopting contactless payments is essential for staying relevant in today’s business environment. Whether you use NFC-enabled cards, mobile wallets, or tap-to-phone technology, offering contactless options helps you deliver faster service, improve security, and meet customer expectations. As payment habits continue to evolve, businesses that embrace these tools will be better positioned to thrive in the digital-first economy.