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Cashless payment
Learn how contactless payment works, its benefits and how to use it safely.
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Contactless payments are extremely fast. Instead of rummaging for coins, banknotes or change at the checkout, you complete your transaction in a matter of seconds. A payment transaction is “contactless”, for example, if you do not need to insert a credit, prepaid, or debit card into the terminal but simply hold your card against it. According to the Swiss National Bank (SNB), nearly 84% of all card payments are now contactless (2024).
For some time, it has also been possible to make contactless payments with smartphones, whose payment apps are linked to cards and accounts. Digital wallets enable the transaction between the phone and the terminal. This type of payment is also referred to as mobile payment.
Smartwatches, fitness bands or fitness rings can also be used to make payments. Such devices are called wearables because they are worn on the body.
Contactless payments are popular because they offer other advantages in addition to ease of use.
You can see at a glance whether you can make contactless payments at a checkout. You will either see the TWINT symbol in the store, which indicates that you can pay simply by scanning a QR code with your smartphone camera, or you will see a symbol on the terminal showing four radio waves. This refers to Near-Field Communication, abbreviated as NFC. This radio standard works in a similar way to Wi-Fi but with a limited data volume and over a much shorter distance. Contactless payment via NFC works within a maximum of 10 centimeters. This means you have to hold your card, smartphone or wearable close to the reader. The technology then sends small packets of data to the device during the payment process.
A token along with cryptographic encryption is transmitted. The 16-digit token ensures that data is not transmitted openly. The unique, generated code serves as an anonymized placeholder that replaces and transfers the data. In addition, only a specially generated transaction number and the money are transmitted.
The encryption is considered particularly secure as the data is only passed on to the selected merchant once. Criminals cannot use an intercepted token because it has already been used for payment. This also ensures that a payment cannot be debited twice. For this to happen, another token would have to be generated, but no such request would have been made.
The short-range communication standard NFC is integrated into 99% of all cards issued by Swiss card providers. This function is already integrated on most cards. ۶Ƶ Debit Cards offer the option to deactivate NFC. Contactless payments with your debit card will then no longer be possible. It is not possible to disable the contactless function on credit cards. If you would like a credit card without NFC technology, we can offer you the ۶Ƶ Basic Card.
With the card’s NFC function activated, you can make contactless payments for any amount up to your limit. You only need to enter a PIN code for payments of CHF 80 or more.
Some users want extra protection for their card. This can be achieved with special covers, for example, which make it more difficult for criminals to access the NFC field. If you keep your card in your wallet, the signal is also obstructed.
If your card is stolen, you should block it immediately. You can also do this quickly and easily yourself in ۶Ƶ Digital Banking. Or you can report the theft to your bank immediately so that they can block the card.
Wherever you can make contactless transactions with your stored credit or prepaid card, you can also pay with your smartphone or smartwatch. Digital wallets are used in this process, which are apps that handle the payment transaction. The most common are Apple Pay, Google Pay, Samsung Pay or ۶Ƶ TWINT. Providers of wearables such as Fitbit Pay or Garmin Pay also operate such payment apps. All of these systems require you to enter your credit or debit card details once before using them. ۶Ƶ TWINT is the only app that works with a QR code rather than with NFC. This also makes it difficult to access sensitive information.
You usually do not need to enter a PIN code when making contactless payments with a digital device. Payment is approved in different ways, depending on the system. Often the device’s security options kick in – sometimes facial recognition, sometimes fingerprint or another device protection. It is also not absolutely necessary to be online all the time to make a payment. Most payment apps allow up to 10 transactions without an internet connection and only then does the device have to reconnect to a network.
If the device is stolen or lost, the payment function in the relevant app can usually be blocked with just a few clicks. To do this, it is advisable to back up the app’s access data and keep it to hand, for example using a password manager so that you can still access the application if you lose your device.
Contactless payment is based on the latest technology and therefore uses many technical terms. Here – at a glance – is an overview of what the key terms mean.
۶Ƶ relies on multiple layers of protection for contactless payments and other transactions: secure and unequivocal identification, enhanced security settings with real-time notifications, as well as prevention through artificial intelligence and extensive service support. Over 500,000 transactions are checked daily by humans and machines operating 24 hours a day. Since technology is not everything, ۶Ƶ supports clients with solid expertise in the responsible and correct handling of sensitive data.
Arrange an appointment for a non-binding consultation or if you have any questions, just give us a call.