Cashiers and customers across Malta and Gozo have new reasons to exchange smiles instead of cash as more retailers adopt Contactless payment technology in 2016.

This is now possible as Global Payments have successfully managed to certify the Contactless functionality with both Visa and MasterCard.

Contactless payments allow customers at checkouts and shop counters to pay by simply tapping their card against a reader, without the need for swiping their cards and entering a PIN.

At the heart of this new way of paying is Near Field Communication (NFC) technology, found in most smartphones and increasingly being added to newly issued bank cards. Customers just tap their Contactless-enabled card or mobile device (smartphone, key fob, or even a wristband) onto a Contactless-enabled reader. The chip and antenna in the device securely transmit payment details to the reader which is connected to a merchant’s Point-Of-Sale (POS) system.

“Cash gave way to card and the magnetic stripe on the card made way for the chip. Now, the chip is being overtaken by the antenna built inside the card. The future of payments is here today as more merchants and customers realise they can reduce queuing and enjoy more of the actual shopping experience,” said Stephen Teuma Country Manager, Global Payments Malta.

This powerful convenience factor has attracted a lot of attention from retailers and service providers, from supermarkets to cafes. For example, in the UK commuters are being offered the option to pay on buses, Tubes, Trams and most of the rail services using Contactless. Travellers simply tap their cards against the Contactless-enabled readers, swerving in and out of stations without the need to ever buy a ticket again.

“To merchants and retailers, the main advantage is shorter queues at check-out points, as less fumbling of cash and swiping of cards takes place,” added Mr Teuma. Other benefits to merchants include the reduced costs related to cash handling, increased number of transactions, and higher average transaction speed, as cardholders aren’t limited to the cash they’re carrying.

Currently, the Contactless cards have a daily cap that varies between €20 and €25 depending on the type of card.