Best contactless payment methods when traveling

Over time, how we spend our money in a new country has drastically changed. Different payment methods exist, from converting your cash to that country’s currency to swiping your credit card on their point-of-sale machine. The world of finance is entering a new space where you don’t need to connect the card directly to the reader. Contactless payments have become a popular way to make payments while traveling and are quickly being implemented worldwide.

Ways to pay cashless in foreign currency
Contactless payments cover many methods, including mobile apps, digital wallets, and contactless cards. For the average customer, it’s a simple way to make payments without holding cash or swiping your card, which is suitable for anyone traveling. While on the go, it’s a convenient way to pay for anything.

Bank wire
The most popular way to make contactless payments while on the go is bank wire transfers. A bank wire is a way of transferring funds from you to another person. It is usually done with mobile apps for the bank you are using, and you can transfer directly to another person’s bank account.

To make a bank wire transfer, you only need the recipient’s bank account details, like account number, routing and transfer numbers, bank name, and full name. Wire transfers are convenient, as most banks process funds within 24 hours. It depends on the situation and can take up to 72 hours. International wire transfers are as simple as domestic transfers, making them suitable when traveling.

Earn forex from trading
Earning forex through trading is another convenient way to make payments while traveling. Forex trading involves buying and selling currencies on the international market. Due to online trading platforms, you can easily trade forex anywhere with a smartphone or computer and an internet connection.

When you participate in forex or CFD trading, you can earn additional income while traveling. It involves looking at the market trends and profiting from fluctuations in currency exchange rates. You won’t need physical cash or traditional payment methods when using the extra income from trading.

Contactless cards

Another option is to use contactless cards to make payments. Also known as ’tap to pay’ cards, these look like your regular card but can wirelessly communicate with the reader. It also comes with a magnetic strip and chip in case the store you’re at doesn’t have a contactless card reader.

Contactless cards have become more popular over the years, but the adaptation is still slow as some stores don’t have suitable card readers. Some banks that have contactless cards include Bank of America, Discover, Citi, Chase Visa, American Express, Capital One, and Wells Fargo. Tap-to-pay cards offer fraud prevention and are more secure.

PayPal and other mobile wallets
Mobile apps and wallets like PayPal, Google Pay, Apple Pay, Payoneer, Skrill, and Neteller are contactless payment methods that have become very popular. Rather than leaving your money in your bank or credit card account, you can store it in your mobile wallet and use it to complete transactions wherever you are.

To use these tools for contactless payments, you need to enable the contactless payment capability on your smartphone and download the required apps. Then, you just place the phone about four inches away from the card reader, and it will make the payment. Mobile wallets are preferred for added security, as they usually request codes, fingerprinting, face identification, and more before approving a transfer.

Benefits of contactless payments

There are different benefits to using contactless methods when traveling. The first is security and fraud prevention. With contactless cards or mobile wallets, you can keep your card information away from others, as the card reader will read the frequency from a short distance.

It is also convenient to pay with your smartphone through a transfer or electronic wallet rather than a physical card. The time it takes for a reader to check the card and process the transaction is slower than a tap-to-pay app. Furthermore, it is more sanitary as you don’t have to contact anyone.

Disadvantages of contactless payments
But contactless payments have downsides. Since they have yet to be widely accepted, you might end up in a store or restaurant that does not support tap-to-pay methods during your travels. Also, technological errors can require you to swipe your card manually rather than using the tap-to-pay option.

Easily make payments while on-the-go
With bank wire transfers, tap-to-pay cards, foreign exchange trading, and mobile wallets, you can benefit from diverse contactless payment methods and enjoy better security and convenience. Fortunately, contactless payment methods are becoming widely accepted, so there’s a good chance that you can find stores in your new city that accept them. Despite this, holding some hard cash when traveling is recommended, as some local vendors or smaller stores might not have tap-to-pay methods.