Stripe Contactless Payment: Everything You Should Know

June 23, 2023 2:13 pm Published by Leave your thoughts

Written by: Zachary Amos, Contributor

Businesses are using technology to improve every aspect of their processes. From supply chain management to contactless carry-out delivery, industries are finding ways to stay competitive while operating in the new post-pandemic normal.

Stripe contactless payments are one of the technologies businesses are adopting. This payment method is precisely what it sounds like. It allows customers to buy products and services without directly or indirectly contacting another individual.

While initially seen as a niche technology, contactless payments have become a great selling point for businesses in the COVID-19 age. They can reduce the risk of transmitting diseases from direct or indirect contact — something that consumers have become very conscious of in recent years.

How Does Stripe Contactless Payment Work?
Stripe contactless payments use near-field communication technology (NFC). Enabled devices can read the payment method wirelessly, eliminating the need for contact with a representative.

NFC technology uses radio frequency identification to communicate between payment methods such as a credit or debit card. These cards feature embedded RFID chips, which emit a radio frequency when activated that the NFC device can read. Not all credit and debit cards include this, but it will become standard.

Consumers can use digital wallet apps on mobile devices, such as smartphones, instead of credit or debit cards. Examples of digital wallet programs include Apple Pay, PayPal and Google Pay. They operate similarly to NFC cards — customers must be near an NFC reader to pay.

What Are the Benefits of Stripe Contactless Payments?
Throughout the pandemic and now in our post-COVID world, technology has continued to evolve and adapt to help keep us safe. We can harness 3D printing to create masks and respirators, use security cameras to read thermal images and identify fevers, and even get orders delivered by robots. Stripe contactless payment is yet another technological advancement that helps reduce the spread of diseases transmitted by human contact. But even as the world moves past the pandemic, your business can still benefit from stripe contactless payments.

Greater Security
Stripe contactless payments offer enhanced security and fraud prevention measures. Security technology is becoming more complex, and payment technology is catching up.

There are certain risks with electronic payment systems, but NFC technology eliminates some of them. It transfers information to payment devices such as card readers using a token or one-time automated code.

This code is discarded after making a purchase, and a new one is generated each time something is bought. Changing the code every time makes it impossible for cyber attackers to hack NFC technology and steal consumers’ money.

NFC devices are simple and don’t use a password system. Since the one-time use codes no longer work, even if a hacker obtains one, they cannot purchase in the consumer’s name. In addition, it is also improbable that a hacker can intercept a fund transfer from an NFC device to a reader. Transactions are short-distance — meaning cybercriminals must be next to the consumer to breach the signal an NFC device emits.

More Convenient for Consumers
Stripe contactless payments are also much more convenient for consumers to use. Traditional payment methods require people to find, swipe or insert a credit or debit card into the reader. Cash payments might be even more tedious — forcing people to pull out their wallets and find the right amount they need.

Contactless payments make the process faster for the consumer. All they have to do is be close to the NFC-enabled device and briefly tap their credit card or cellphone onto the reader. Sometimes, the NFC reader can obtain the signal through bags and wallets. Contactless payments also save on maintenance for credit and debit cards. Traditional magnetic strips wear away with time, forcing customers to obtain new ones. NFC-enabled cards eliminate this issue.

Stripe Contactless Payments Are the Newest Innovation

Even while the COVID-19 pandemic has calmed down in recent years, the technological innovations created during that time are here to stay. Stripe contactless payments will continue to become more widespread, allowing businesses to give their customers a better way to buy.

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This post was written by Megabite

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