Following ICICI Banks, almost all banks will soon launch Contactless Debit and Credit Cards in the market. The latest cards will use the near field communication (NFC) technology to make payments at outlets.
How does Contactless Debit and Credit Cards in India Work?
Such card holders need not swipe the card at the POS (Point of Sale). They can simply tap it on the terminal and pay for your purchases. After tapping, enter the PIN, within seconds it beeps and a sales slip is issued when transaction is completed. However, on such cards, signature is not required.
The merchants include quick service restaurants, coffee shops, shopping marts and fuel stations where fast transactions are much required. The Bank plans to shortly extend this facility to other cities as well.
Benefits of Contactless Debit and Credit Cards
These cards require significantly less time compared to other cards to complete a transaction. While, there is no compromise on the security as the card remains with the customer.
This means that the merchant does not get to see your card details.
Some experts believe as there are multiple layers of security, even if the card is lost or stolen using mobile apps, it cannot be misused.
Speaking at a recent launch, Mr. Rajiv Sabharwal, Executive Director, ICICI Bank said, "We have always leveraged technology to introduce digital innovations and bring forth world-class banking experience to our customers. Many of these were firsts in the industry like Internet, Mobile, Tab and Touch banking among others. We are delighted to partner with MasterCard and Visa to introduce the country's first credit and debit card enabled with the contactless payment technology. We expect this to be a big game changer in the Indian payment industry"