Tap and Go

Tap and Go is commonly used to describe contactless payment technology where users make a payment by simply tapping their contactless card, or wearable device on a payment terminal without inserting the card or swiping it. The technology is based on Near Field Communication or Radio Frequency Identification to ensure secure, fast, and convenient transactions. This ensures a good customer experience in a frictionless manner.

The growing adoption of tap-and-go payments is because of its speed, cashless convenience, and elimination of physical contact that often is associated with cash transactions. 

How Tap-and-Go Works:

1. Tap: Users tap their contactless card, or wearable device near an NFC or RFID-enabled payment terminal. The terminal has a range of 2–4 centimeters from the device.
2. Data Exchange: After the tap, the NFC/RFID chip of the device wirelessly communicates with the terminal, transmitting encrypted information about the payment securely. The same payment networks are used that connect cards, processing the transaction.
3. Authorization: The payment terminal engages with the issuing bank or financial entity to verify the transaction. It usually takes a few seconds.
4. Confirmation: The payment terminal displays confirmation of the transaction. The customer does not need to enter a PIN (Personal Identification Number), but for higher amounts, additional authentication may be required.

Key Technologies Behind Tap-and-Go:

1. Near Field Communication (NFC): NFC is a short-range wireless communication technology that aims to exchange data between two devices within a distance of 4 cm. At its core is the main enabler of Tap-and-Go payments, which provides for the safe transfer of payment credentials from the card to the payment terminal.
2. NFC-enabled Cards: Contactless NFC cards are embedded with an NFC chip to store payment information. This allows secure wireless transactions without physical contact.
3. RFID (Radio Frequency Identification): Tap-and-Go systems use RFID-enabled wristbands or cards that allow access and payments, working almost in the form of an NFC but operating at slightly long distances. An RFID system is widely used for cashless payments in festivals, theme parks, or even other venues.
4. Encryption: The NFC/RFID chip encrypts communication with the payment terminal as well, to ensure the integrity and security of the transaction. It is such encryption that will prevent a third party from accessing sensitive data in a payment transaction.

Benefits of Tap-and-Go:

1. Speed and Convenience: One of the biggest advantages of Tap-and-Go is the speed of transactions. Payments are processed in seconds, making it ideal for high-traffic environments like events where minimizing wait times is important.
2. Enhanced Security: Tap-and-Go systems use encryption to ensure that payment data is secure. Contactless payments are also considered more secure than traditional magnetic stripe card payments because of the dynamic encryption process, which makes it difficult for fraudsters to clone or skim card information.
3. Integration with Wearables: The ability to use wearables for Tap-and-Go payments makes it highly versatile. Customers can pay using their RFID cards or wristbands, providing a convenient, all-in-one solution for cashless payments.
4. Supports Low-Value Transactions: Tap-and-Go is ideal for event low-value transactions, such as purchasing beverages, food, or tickets, where speed and efficiency are crucial. Most merchants set a limit for Tap-and-Go payments without requiring a PIN. Many countries raised contactless transaction limits during the pandemic to encourage more contactless payments.
5. Widely Accepted:Tap-and-go payments are accepted by millions of merchants globally. Most modern point-of-sale (POS) systems are equipped with NFC-enabled terminals, making contactless payments easy and accessible for consumers worldwide.