A guide to contactless phone payments

Gone are the days of having to carry cash or even swiping a card to make a purchase. In today’s digital-first world, contactless phone payments have changed the way people shop.

Shoppers are using their phones to make payments more than ever. Contactless purchases are expected to increase annually by an average of 23% worldwide, exceeding more than 522 billion purchases by 2026.¹

So what exactly is a contactless phone payment? This guide explores how to pay with a phone, the way it works and answers some commonly asked questions.

How contactless payments work

Many of us know the feeling of standing at a checkout line, fumbling through our wallet to find the right payment card or counting up the cash needed for a transaction.

Contactless phone payments allow you to complete transactions simply using your mobile phone as a payment tool. Contactless phone payments utilise near-field communication (NFC) technology, which allows two devices close to each other to transmit data wirelessly.

With various contactless payment methods available, here’s a breakdown of how you can pay with your phone:

• Digital wallets. Digital wallets allow you to store your payment information securely on your phone. When you're ready to pay, you hold your phone near the payment terminal with your digital wallet open, and it communicates wirelessly with the terminal to transfer the payment information.

• QR code payments. This is where you scan a code displayed by the merchant using your phone's camera. Once scanned, you confirm the payment on your phone and complete the transaction.
• Tap to pay. Tap to pay is a method similar to using a digital wallet. Instead of holding your phone up to the terminal, you simply tap your physical card on the terminal.

When do contactless phone payments come in handy?

Whether you’re in a hurry or simply looking for an easy way to pay, using your phone to pay can provide a fast, secure, and convenient way to complete transactions on the go.

Here’s an overview of some potential benefits of using contactless phone payments:

• They’re efficient. With contactless phone payments, there’s no need to carry cash or cards. Instead, all you need is your phone, which you likely already have with you.
• Transactions can be fast. Contactless payments are generally quick, making it possible to pay for purchases in just a few seconds.
• Real-time tracking. Many contactless payment methods allow you to view your transaction history and keep track of your spending in real time.
• They’re widely available. Contactless payment methods are widely accepted at major retailers, restaurants, and other businesses.

Is using your phone for contactless payments safe?

Yes, contactless phone payments are generally secure. Because payment information is stored on your phone and transmitted wirelessly to the payment terminal via NFC technology, you don't have to worry about someone stealing your card or cash.

Plus, many contactless payment methods use advanced encryption and authentication to keep data safe.

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