BENGALURU: The Contactless payments system operates using Near Field Communication (NFC) technology. The NFC is a technology that enables Smartphones and other devices to use radio – frequency identification to enable contact with each other within a close proximity. 

#1 Mechanism Of Contactless Cards: The credit cards and smart cards or other devices use radio frequency identification for making secure payments with Contact payment system using Near Field Communication technology.

It is incorporated in an embedded chip and an antenna which enables the users to wave their card over a reader. It never requires any signature or PIN verification. At this point a connection is made using NFC technology. You may be asked to scan your finger to approve the transaction.

The transaction is the validated in a separate chip called source element (SE). Source Element relays that authorization back to the NFC modem. Finally the payment processes as it does in the traditional system.

#2 Experts Advice: According to an article in Economic Times, these cards are fully secure and immune to any unwanted attempts or fraudulent transactions.

 It is made secured by providing multiple security levels in each layer of processing.

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