What characterizes a contactless payment?

A contactless payment is characterized by the ability to complete transactions without the need for any physical connection between the payment device and the point-of-sale terminal. This technology typically utilizes near-field communication (NFC) or similar technologies, allowing consumers to make payments simply by bringing their contactless card or mobile payment app close to a reader.

This method enhances convenience and speed, making transactions faster than traditional methods that require swiping or inserting a card, or even writing a signature. It is particularly useful in situations where speed is essential, such as in retail locations or transit systems.

The other options represent aspects that do not align with the nature of contactless payments. For instance, contacting payment methods requiring physical connection or requiring signatures contradict the fundamental principle of contactless technology, where interactions are meant to be seamless and swift. Additionally, while the term "contactless" may suggest non-physical methods, it does not limit itself solely to online transactions, as contactless payments can occur in various in-person settings.