What does the term Contactless Payments refer to?

The term "Contactless Payments" specifically refers to payments that are enabled by close-range technology, which allows consumers to make transactions without having to physically swipe or insert their payment card into a point-of-sale terminal. This technology typically uses Near Field Communication (NFC), which facilitates secure communication between devices at a very short distance—generally just a few centimeters.

Contactless payments provide a quick and convenient method for consumers to complete transactions, often simply by tapping their card or mobile device on a reader. This method enhances the customer experience by reducing transaction times and minimizing physical contact, which is particularly valuable in settings that emphasize hygiene and efficiency.

In focusing on other options, payments made through physical verification (as mentioned in the first option) would typically involve more manual processes, such as requiring the physical card to be presented and verified. Biometric authentication (the second option) relates to a different security measure that often complements payment methods but is not the defining feature of contactless payments. Lastly, conducting payments only via cash transactions is entirely contrary to the concept of contactless payments, which revolves around electronic and digital methods rather than traditional cash.