Consumers encouraged to adopt contactless payment technology |10 December 2020
Some of the presentations (Photos: Thomas Meriton)
The term contactless payment refers to a secure method for consumers to purchase products or services using a debit, credit, smartcard, or another payment device by using radio frequency identification technology and near-field communication.
This payment method works by tapping a payment card or other device near a point-of-sale terminal equipped with contactless payment technology.
Contactless payment is also referred to as tap-and-go or tap by some banks and retailers.
Already introduced by several commercial banks locally, the Central Bank of Seychelles, along with the Seychelles Bankers Association (SBA) are encouraging more people to adopt the payment technology which they have described as “fast, safe, easy and secure”.
The call is in line with the National Payment System (NPS) modernisation plan of the Central Bank of Seychelles (CBS) vis-à-vis contactless cards.
Based on the plan, the use of contactless card will promote digital payment platforms and innovative digital financial services, as well as speed and convenience.
In a press conference yesterday at the CBS boardroom in Victoria, financial inclusion analyst Brigitte Lucas gave a presentation on the implementation and benefits of such practice which is also in line with the visa rules as amended – October 13, 2018 – for the Central and Eastern Europe, the Middle East and Africa (the CEMEA region) which states that April 2023 will be the deadline for all acceptance devices across CEMEA to be contactless enabled, with the exception of ATMs.
The main reason behind the decision is to reduce fraud.
In her presentation, Ms Lucas explained that as per the retail banking research (RBR) study in June 2019, there were 5.3 billion contactless cards in circulation worldwide ‒ representing 35% of all cards, with the expectation that this amount will increase to 57% by 2023.
Also present at yesterday’s presentation were head of cards at Nouvobanq Collin Confait who also made a presentation on behalf of the SBA; Audrey Chetty, senior financial inclusion analyst at the CBS; Christophe Edmond the first deputy governor of the CBS; head of products at Absa Bank Seychelles Limited Murugan Pillay; as well as the deputy managing director of the Mauritius Commercial Bank (MCB) Regis Bistoquet.
To see if a card features contactless payment technology, look for a wave-like or field symbol on either the front or the back.
The contactless card limit is normally determined by the respective bank, while the method is more secure than carrying cash, and quicker than Chip and PIN.
Contactless payments are fast and convenient to use in places where you need to pay on the go, such as fast-food restaurants, grocery stores, convenience stores and payments are easy since all you have to do is tap your card on the checkout terminal to complete your payment.
The contactless payments are secure because just like a chip card, each transaction is accompanied by a one-time security code that protects your payment information, and unlike cash, one can keep better records of purchases with your contactless while still do everything you would do with a non-contactless card.
Just like with a chip card, each transaction is accompanied by a one-time security code that securely protects payment information.
One cannot pay accidentally since the card must be within 1-2 inches of the terminal for the transaction to occur, while one will not be billed twice, even if accidentally tap twice.
Roland Duval