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CodeAspire > Blog > Digital and Contactless Payments

  • CodeAspire
  • May 30, 2020

Digital and Contactless Payments

Digital and Contactless Payments; a New Definition for Spending

We are living in a huge Pandemic today. No one knows when will it end? COVID-19 is the best time to introduce new methods of payment which is contactless or we can say digital payments. It doesn’t mean that we are not using digital payments before the pandemic but almost 50% or above are not using it frequently. Many of us are not even aware of this and use cash for almost every payment.

This is the time when everyone wants to be safe and want cashless payments so that they do not come in contact with each other. Now, we have to move forward towards digital and contactless payments.

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So, firstly we have to be clear minded that what digital and contactless payment is?

Digital payments are non-instrumental payments (instruments here mean cash, paper, card etc). Digital payments are conducted on the Internet, Mobile Application and on the computer screen. The payer and payee both need screens to send and receive money.

Contactless payments include Digital payments but also include debit cards, credit cards or master cards. So, we can say contactless payments are the best way to use today.

Advantage of using digital and contactless payments:


  • CONVENIENCE: For paying cash we have to go to the bank or ATM, stand in a long queue. Then we withdraw the cash and then we can pay someone. But in digital payments, you just use your Debit card on the machine which payee had and money is transfer. You don’t need to do hustle for stepping towards the bank. Or you can pay digitally that’s more simple just use your mobile phone, send money and done. Bank Queue Management Systems | Bank Queue System


  • SPEED: Now we don’t have to stand in a long bank queue. Just with the use of a mobile application send the money directly to the payee. Payments from cards can take some time because you have to fill the PIN in the machine but digitally you need nothing. You just ‘Tap and Wave’.
  • SECURITY: Security is a very important thing for us. Contactless payments are secure. You have the entire data store in your mobile that to whom when and how much you send to someone. There is no chance that someone to deny payments because you have a solid proof. It is transparent and no chance of corruption and fraud. 

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  • NO FEAR: now there is no fear of losing cash or getting fake currency. If someone steals your mobile or card you can block the platforms and your money is safe.

The Disadvantage of using digital and contactless payments:


  • LIMITED TRANSACTION: You always have limitations on the maximum amount of transactions. You cannot exceed the limit in any case. You have restrictions on how much you can spend daily and more. But it is useful sometimes.
  • CYBERCRIME: Hacking, e-theft increases. It is not done with every account you just need awareness to save your account from this. Such as never share your account details, never share your OTP etc. By taking some precautions you can save your money from cybercrime. 8 Web Courses to Supplement Your Hacking Knowledge « Null Byte ...


  • Connectivity problem: Sometimes you don’t have a good internet connection or sometimes there are some technical problems due to which you are not able to send the money. But this problem is not valid for debit cards and credit cards. So, payments from cards can be done.
  • OLD AND ILLITERATE PEOPLE: India has lots of population which is illiterate. So, it is difficult for them to understand all this. It is very frequent for them to send money to some other or they don’t even know how to send. So, if we step towards a fully digital system it is very difficult for this particular group.  


Everything has pros and cons. So, we have to accept it if it is good for us and our economy. And in the time of crisis, we need it for our safety and our world’s safety.

We are also expecting a universal mandate from many of the large retailers to go 100% digital in the coming months, this will also help us increase the scope of the business,” said Agrawal of Innoviti.


“These will be a few tough months but after that, once the situation improves; there will be a new normal. Contactless payments will see major adoption. Bill payments will largely go digital and investors will place their bets on players who can capture the opportunity then,” said Vivek Belgavi, partner for fintech and payments at PwC India.