Contactless payment refers to a method of transaction that allows users to pay for goods or services without having to physically touch or insert a payment card or device into a point-of-sale (POS) terminal. Instead, contactless payments are made by simply tapping or holding the payment card, smartphone, or wearable device near the payment terminal. This method uses radio-frequency identification (RFID) or near-field communication (NFC) technology to facilitate the transaction.