Contactless Payments Resources

Contactless payments are simply payment transactions that require no physical contact between the consumer payment device and the physical point-of-sale (POS) terminal. In a contactless payment transaction, the consumer holds the contactless card or NFC-enabled mobile device in close proximity (less than 2-4 inches) to the merchant POS terminal and the payment account information is communicated wirelessly (via radio frequency (RF)).

Contactless chip cards were first issued in the U.S. in 2004. Contactless payments using NFC-enabled mobile devices started with Google Wallet in 2011, followed by Softcard in 2012. The U.S. launch of Apple Pay, Android Pay and Samsung Pay in 2014 and 2015 reignited interest in contactless payments with NFC-enabled mobile devices. Both contactless chip cards and NFC-enabled mobile devices use ISO/IEC 14443-based technology, ensuring payment solution compatibility regardless of brand or payment device when used with contactless readers that have been approved by the payment networks.

Research shows that consumers, issuers and merchants benefit from the use of contactless payments. Consumers enjoy added convenience, speed and ease of use, while issuers and merchants enjoy faster transaction times, increased spending per transaction, lower operational costs and penetration into the cash payment market.

The resources below were compiled by the Secure Technology Alliance to provide information on the status of the contactless payments programs in the U.S. The Secure Technology Alliance has also created a LinkedIn group, Smart.Payments open to the public to stimulate discussion of payments-related topics

Contactless Payments Reports and Presentations

• Card Payments Roadmap in the U.S.: How Will EMV Impact the Future Payments Infrastructure?
• The Changing U.S. Payments Landscape: Impact on Payment Transactions at Physical Stores
• Contactless EMV Payments: Benefits for Consumers, Merchants and Issuers
• Contactless EMV Payments: Issuer Opportunities Webinar
• Contactless EMV Payments: Merchant Opportunities Webinar
• Contactless Payments in the U.S.: Guides for Merchants and Issuers
• Contactless Payments Security Q&A, December 2016
• EMV and NFC: Complementary Technologies Enabling Secure Contactless Payments
• EMV Tokenization webinar
• Federal Reserve Mobile Payments Industry Work Group
• Implementation Considerations for Contactless Payment-Enabled Wearables
• IoT and Payments: Current Market Landscape
• The Mobile Payments and NFC Landscape: A U.S. Perspective
• Near Field Communication (NFC) and Transit: Applications, Technology and Implementation Considerations
• Security of Proximity Mobile Payments
• Transit and Contactless Open Payments: An Emerging Approach for Fare Collection
• What Makes a Smart Card Secure?