- Karvy - https://www.karvy.com -

Contactless Cards: Tap To Shop

The past couple of years have seen payments industry make tremendous strides in India. From the introduction of debit and credit cards to awareness regarding online banking, and now to the adoption of mobile wallets and contactless cards: the industry, it seems, is coming of age. -By Naveen Kukreja

Several banks have issued contactless cards, with ICICI Bank leading the way by launching them the first time in January 2015. Their popularity has been on an upswing and this is evident from the fact that SBI plans to increase the number of Point of Sale (POS) machines to 1 lakh and convert the existing machines into Near-Field Communication (NFC) enabled. With banks gearing up for contactless cards, it’s time we also take a detailed look at this newest technology.

Some contactless cards currently available in India are:

  1. ICICI Bank Coral Contactless card
  2. SBI Signature Contactless cards
  3. Axis Bank’s range of contactless credit card and Multicurrency Forex Card

How do contactless cards work?

Contactless cards use near-field communication (NFC) technology. It is a shortrange wireless communication technology that enables exchange of data between devices over about a 10-centimetre distance. To make the payment, you only have to tap the card at a POS machine. These cards can also be used in the traditional way, by swiping or dipping.

To make the payment, you only have to tap the card at a POS machine. These cards can also be used in the traditional way, by swiping or dipping

Pros

Cons

Written By: Naveen Kukreja