Contactless technology is increasingly becoming a popular payment method in various establishments, such as supermarkets, ice cream parlors, and cinemas. This digital payment method eliminates the need for cash or card insertion into a payment terminal, making transactions more convenient. In recent years, contactless payments have grown in popularity and are now being integrated into two popular virtual wallets in Argentina.
Near Field Communication (NFC) is the technology behind contactless payments. It allows data transfer between compatible devices when they are within a few centimeters of each other. This short-range wireless communication technology facilitates quick and convenient interactions between electronic devices like cell phones, credit cards, labels, and readers.
Cell phones with NFC technology can be used for a variety of tasks, including mobile payments, file transfers, and device pairing. By activating the NFC function on a smartphone, users can make financial transactions by simply bringing their device close to a compatible payment terminal. This process is fast and secure, reducing the risk of interference from third parties.
Apple and Google are at the forefront of contactless payments in Argentina with their virtual wallets Apple Pay and Google Wallet, respectively. With these apps, users can store their debit or credit cards on their phones and make payments using NFC technology. These platforms do not manage funds but simply load card data for easy transactions.
In addition to Apple and Google, local companies like Mercado Pago and MODO are also testing their own NFC payment systems. These developments could potentially increase the adoption of contactless payments in the country. With support from banking entities, MODO allows users to load multiple bank accounts and payment instruments on a single mobile application for everyday financial transactions.
Overall, contactless technology offers a convenient way to make transactions without the hassle of handling cash or cards
