What are the best contactless payment solutions?

Since the World Health Organisation stated in March 2020 that there was some risk of being infected through the exchange of coins and notes, contactless payments have become the ultimate hygiene measure against the coronavirus. But what does this payment method consist of exactly?

Contactless payment systems are based on NFC (Near Field Communication). This short-range, high-frequency, wireless communication technology combines an integrated chip and antenna, and enables the exchange of information between devices up to 5 centimetres apart. All you have to do is hold your bank card, mobile or smartwatch over a payment terminal in the store to instantly pay for your purchases. The system is practical and secure: no need to touch the payment terminal to enter a code or provide change.

By bank card or by mobile

There are 2 types of contactless payment: by bank card and by smartphone. All major Luxembourg banks provide bank cards equipped with NFC technology. The contactless card is mainly used for small purchases with a limit that until recently was EUR 25. Since then, this limit has been increased to EUR 50. However, you must enter your PIN above this limit or if consecutive cumulative contactless purchases exceed EUR 100.

Mobile payment enables you to pay with similar limits to that of your cards, and offers additional features. There are several solutions available. The most popular in Luxembourg are currently Apple Pay, Google Pay, Samsung Pay and Digicash. The first 3 work on the same principle: the credit card is digitised in the electronic wallet of the device. They offer the same services: you can make purchases in the same way as with contactless cards and pay instantly on partnered applications and mobile sites. The only notable difference lies in their compatibility: each solution only works with the products with NFC belonging to the same brand or operating system. In addition, not all banks offer these mobile payment solutions. Just check with your bank to find out which of these 3 first mobile payment solutions it is compatible with.

Scan, confirm, it’s paid!

Digicash is a mobile payment service offered by the country’s main banks and enables you to make purchases directly from your current account. It is simple to use: after downloading your bank’s Digicash application and linking it to your current account, you can make contactless payments in shops and restaurants, pay your bills via a scan, and make purchases online and through apps. Just place your smartphone near a Digicash terminal, scan the QR Code on the bill or choose Digicash as a means of payment and approve the payment. You can even send money simply with the recipient’s mobile number: the money transfer is completed by bank transfer from your account to the recipient’s account.

For the moment, this service is only valid in Luxembourg and a certain number of partners, like 73% of municipal administrations and the Grand Ducal Police! But the service is gaining in popularity: partnerships with merchants are increasing, and it will soon be possible to make cross-border payments.

More about ING’s Digicash on www.ing.lu/digicash