What do we call payments made without physical contact between two devices?

Contactless payments refer to transactions that are completed without the need for physical contact between the payment device (such as a credit card or smartphone) and the payment terminal. This method of payment uses technologies like Near Field Communication (NFC) or RFID, allowing the devices to communicate and complete the transaction simply by being in proximity to each other.

This convenience enhances the speed and efficiency of transactions, especially in high-traffic areas, and provides a more seamless experience for customers. Contactless payments are widely accepted in retail environments, making them a popular choice for consumers who value quick and convenient payment options.

While options like Bluetooth transactions and wireless payments may involve some form of connection without physical contact, they do not specifically refer to the contactless payment feature that is recognized widely in the retail industry. Direct transfers usually imply a transfer of funds from one bank account to another, which typically does not involve payment terminals or devices communicating at a point of sale. This distinction is crucial in understanding why contactless payments is the correct term for this type of transaction.