With hygiene and speed of transaction both becoming key customer considerations, contactless payment apps have emerged as the best solution for UK businesses.

Life in the fast lane demands quick-fix solutions for every engagement. Retail transactions are no exception. Customers are keen to explore and are fast to adopt payment methods that provide almost instantaneous checkout experiences. On top of this, the COVID-19 pandemic has brought to the fore the virtues of touch-free payment options. In this scenario, if your smartphones turn into secure, swift, and efficient payment terminals, then it significantly benefits both buyers and sellers.

In this in-depth piece, we will explore the evolution, advantages, and applications and list the best contactless payment apps in the UK.

Contactless payment apps: history, advantages, and examples

A brief history

The late 1990s marked the beginning of the exploration of RFID (Radio Frequency Identification) technology for payment solutions, which is where the technology behind contactless payment apps originated. ExxonMobil's Speedpass, which enabled customers to pay for petroleum by waving a key fob near a reader, was the first commercial implementation of contactless payments in 1997. This early adoption paved the path for the widespread use of mobile payment solutions and contactless cards.

NFC (Near Field Communication) technology aided in the development of more adaptable and secure payment methods, which accelerated the evolution. In the middle of the 2000s, major financial institutions and technology companies like Apple, Visa, and MasterCard introduced contactless payment solutions, revolutionising the payment landscape.

The benefits of contactless payment apps

The primary advantages of this technology are:

● Convenience: With the traditional payment methods, did you experience the ease of making payments by just tapping on your smart device or simply waving it? Contactless payment apps have made it so convenient to settle your retail bills or public transportation fares.

● Hygiene: Though the wake-up call came in the form of a disruptive phenomenon like COVID-19, the need for maintaining hygiene in human interaction has always existed. Contactless payment apps enable customers to make secure payments without having to touch card readers or other multi-user hardware.

● Security: To mitigate the risk of fraud, contactless payments implement encryption and tokenisation to safeguard transactions. Furthermore, the limited range of NFC technology reduces the likelihood of unauthorised access.

Popular examples of contactless payment providers

● Wonderful: An emerging name in the field of payment apps in the UK, Wonderful’s One app is a user-friendly platform that leverages open banking technology to facilitate instant bank payments via QR codes or smart links sent to customers via sms, email or WhatsApp. It also provides access to a dashboard with order, payment, and customer history.

● Apple Pay: Apple users can pay through their iPhones, Apple watches, or iPads using this widely used contactless payment method.

● Google Pay: Commonly known as GPay, this is Apple Pay’s variant for Android users. It is one of the more popular and fastest-growing contactless payment apps in the UK.

How to make contactless payments by mobile phone?

The smartphone revolution has made it really easy to make payments through your mobile devices. You can follow the straightforward steps below to make contactless payments from your mobile phone:

The step-by-step process:

● Choose a payment app: Choose a contactless payment application that is compatible with your smartphone. Apple Pay, Google Pay, and Wonderful's mobile payment solution are among the most popular options.

● Add your preferred payment method: Follow the in-app guide to add your chosen payment method, such as bank account, credit, or debit card details. Most contactless payment apps allow multiple payment methods so that you can select at your convenience.

● Verify your identity: You may need to verify your identity through SMS, email, or bank account login for security reasons.

Important security tips:

● Activate biometrics: Fingerprints or facial recognition add an extra layer of security to your mobile transactions.

● Set a strong password: A strong passcode that follows the guidelines of capitalisation, numeric elements, special characters, etc. prevents unauthorised access to your contactless payment apps.

● Track transactions: Monitor transaction passwords, alerts, and bank balances to ensure that there are no fraudulent activities. If you observe any, report to the respective authorities immediately.

How to use contactless cards in the UK?

Contactless cards have become a common payment mode for day-to-day transactions. You can follow the steps below to use them effectively:

Step-by-step process

● Find the contactless symbol: Merchants who have contactless cards will display the same at a convenient place at point-of-sales. Locate the same to proceed further.

● Tap your card: Hold your contactless card close to the card reader until you receive a confirmation or hear a sound that confirms the payment has been accepted.

● Complete the transaction: Most contactless cards allow pin-free payments up to a specified limit, which in the UK is £45 at present. Beyond this threshold, you may have to verify your identity through pre-set PINs or one-time passwords (OTP).

Pitfalls and solutions

● Declined payment: If you have crossed your contactless limit, then your payment is likely to be declined. It could also be a temporary server issue. You can either opt for an alternate payment method like QR Pay or contact support for assistance.

● Stolen or lost cards: To prevent unauthorised transactions, promptly notify your bank of any missing or stolen cards. The majority of banks provide a mobile application feature that allows you to immediately block your card.

The best mobile (contactless) payment apps in the UK

With increased competition, contactless payment apps are vying for an increased share of the growing UK market.

So, which are some of the most secure payment apps in the UK?

● Wonderful: A rising star among payment apps in the UK, Wonderful’s One app enables business to accept direct account to account payments and does away with the need to request, process or store your customers financial data.

● Apple Pay: At 37% market share among online payment users in the UK, Apple Pay holds a prominent space among the country’s contactless payment apps. It has security features which are built in to the hardware and software of your device to protect your transaction data. You must also have a passcode set on your device and, optionally, Face ID or Touch ID to use Apple Pay.

● Google Pay: Google Pay is renowned for its user-friendly interface and worldwide acceptance by merchants. Some of its prominent security features include encrypting all of your payment information and generating a virtual account number. It also requires a screen lock to be setup on your device before use.

● PayPal: The market leader in the UK, PayPal offers some robust security features which includes ensuring that mobile devices establish a TLS connection to connect with a verified PayPal server so that sensitive information is transferred securely. It also enables the use of either your face, fingerprint, device passcode or PIN to log in to PayPal with passkey.

● Samsung Pay: Samsung Pay is widely accepted and versatile due to its compatibility with both NFC (near field communication) and MST (magnetic secure transmission) technology. Some of it’s prominent security features include tokenization of financial data and the use of identity authentication via fingerprint or PIN before information is transferred to the payment terminal.

Simple contactless payments with QR codes

QR Pay is an easy and secure method for making payments that is growing in popularity among buyers and sellers in the UK. Let’s look at how they work and the reasons behind their increasing acceptance:

How do QR code payments work?

To use QR code payments, all you need is a smart device and a scannable code. The code contains payment information, which a secure payment gateway processes seamlessly.

● QR code generation by merchant: The merchant generates a distinctive QR code for the transaction.

● Customer scans the code: The consumer uses their payment application to scan the QR code.

● Payment is processed: Both parties receive a confirmation immediately after the payment is processed.

Advantages of QR codes

● Easy operation: The intuitive and simplistic user interface requires minimal technical expertise for merchants to implement and users to operate.

● Cost-effectiveness: Compared to traditional card terminals, setting up QR codes is considerably cheaper.

● Security: QR codes can be encrypted, which enhances the security of transactions and mitigates fraudulent activity.

Best practices for UK businesses

● Train staff: Your floor staff should have the basic training to assist new or first-time users in troubleshooting issues.

● Promote security: Encourage customers to reconfirm their transaction details to ensure there are no discrepancies later.

● Update software periodically: To take advantage of the most recent security features and enhancements, ensure that your payment app and software are up-to-date.

Best digital wallets and payment apps

Digital wallets are a new and dynamic way of managing and using money. Here’s a list of some of the best contactless payment apps and corresponding digital wallets.

Top digital wallets

● Apple Wallet: Easily integrates with Apple Pay, enabling users to store permits, tickets, and cards in a single location.

● Google Wallet: Provides Android users with comparable functionality, with the additional advantage of being integrated with Google's ecosystem.

● PayPal: The digital wallet of PayPal, which is renowned for its adaptability, is compatible with a diverse selection of currencies and payment methods.

● Samsung Wallet: It's a comprehensive payment solution that combines the capabilities of a digital wallet with Samsung Pay.

The 6 best NFC payment apps

Near-field communication (NFC) technology is facilitating contactless payment apps by enabling touchless payments over short distances.

What are some of the cool NFC apps?

We have discussed Wonderful, Apple Pay, Google Pay, and Samsung Pay as widely accepted NFC payment apps. Fitbit Pay and Garmin Pay are fast gaining traction as fitness enthusiasts can make hassle-free payments through their wearable devices.

Tap to pay

User convenience and faster processing have made tap-to-pay a preferred alternative among several shoppers in the UK. Many financial institutions and payment platforms are increasingly accepting it, thanks to the NFC.

Two of the most popular ones are:

● Stripe's tap to pay: Stripe provides a comprehensive Tap to Pay solution that seamlessly integrates with their payment processing services. It is the optimal choice for businesses seeking a payment solution that is both scalable and dependable.

● Apple's tap to pay: Merchants can now accept contactless payments directly on their iPhones without the need for additional hardware. This innovation streamlines the payment procedure and minimises expenses for small businesses.

Cash app

Developed by Square Inc., Cash App’s robust features make it suitable for business and personal use. You can not only send and receive money and make purchases, but you can also use this contactless payment app to invest in stocks and Bitcoin. Its simple and safe functionalities make it a popular platform for peer-to-peer transfers.

Here’s how the cash app works

● Transferring money: The Cash App enables you to effortlessly transfer funds to your friends and family by inputting their phone numbers, email addresses, or $Cashtag. It is a practical option for splitting bills or paying for services, as the recipient will receive the funds immediately.

● Cash card: The Cash App provides a customisable Cash Card that can be used to make purchases at any retailer that accepts Visa. You can also use the card to withdraw currency from ATMs.

● Investing: Cash App enables users to invest in Bitcoin and equities with a minimum of $1. The application provides real-time market data and insights to assist users in making well-informed investment decisions.

Conclusion

When security and speed converge to provide a smooth user experience (UX), you know that the technology is here to stay. As we march ahead towards 2025, contactless payment apps emerge as one of those technologies that are embedded in our daily lives. The best contactless payment apps, such as Wonderful, Apple Pay, Google Pay, etc., continue to make giant strides in the growing UK market. Consumers and businesses are both embracing this new mode of touchless payment; have you joined the juggernaut yet?

FAQs

What is the best app for contactless payments on Android?

With its user-friendly interface, robust security, and wide acceptance, Google Pay stands out as the best contactless payment app for Android users.

Can I make contactless payments without NFC?

QR code payment systems allow contactless payments without NFC. Wonderful and PayPal allow QR code payments with your smartphone.

How to set up Apple Pay on an iPhone?

Launch the Wallet app on your iPhone, tap the plus symbol to add a new card, enter your card information, and then validate your card with your bank to set up Apple Pay. After verification, you can safely use Apple Pay for contactless payments.

How to set up Apple Pay on Android phones?

Apple Pay is only for Apple devices. Android users can use Google Pay with similar features. Get the Google Pay app from the Google Play Store, add your card or account information, and have your bank confirm the same. You are good to go.

How do Android Pay and Google Pay work?

Users can add credit or debit cards to Google Pay and make contactless purchases by holding their Android device near a payment terminal. The app securely transmits payment information using NFC.