A recommendation from Scotiabank Mexico alerts all physical card users, especially those who are not yet using the Contactless system. According to a statement from the banking institution, they should consider it as soon as possible. This feature allows the card to always be kept visible to the user, reducing the possibility of cloning and fraud in physical stores.
The technology behind contactless payments, NFC or Near Field Communication, is present in most bank cards issued in the country. It works by bringing the card (or even a smartphone or smartwatch) close to a point-of-sale terminal without having to insert or hand it over, minimizing the risk of tampering.
Card payments are growing in Mexico, but fear of fraud remains.
The use of physical cards in Mexico continues to increase. According to data from the National Banking and Securities Commission (CNBV), the percentage of adults with debit cards increased from 34% to 59% between 2018 and 2024, while credit card use increased from 11% to 16%. However, certain barriers remain; around 10% of debit card users say they don’t use them for fear of becoming victims of fraud.
According to Scotiabank, taking advantage of the contactless option could help mitigate this fear. The bank also recommends users verify that their cards have the contactless payment symbol, keep an eye on the card, pay attention to bank notifications, and frequently check transactions using the banking app.
How contactless payment works and why it’s safer
Contactless payments are not new, but they have gained traction thanks to their speed and security. According to Investopedia, this method uses RFID and NFC technology to transmit encrypted data from the chip to the payment terminal. The entire process takes just a few seconds and requires no PIN, signature, or card swipe, reducing the risk of fraud.
In addition, a one-time code is generated for each transaction, further complicating cloning attempts. Unlike magnetic stripe cards, whose information can be easily copied, chip and contactless cards offer a stronger layer of protection.
But like any technology, it is not without risks, as contactless payments can be made even if the card is lost, so it is crucial to keep alerts activated and, in some cases, use protective covers to prevent unauthorized scans.
Mexico is making progress, but the path to 100% contactless still faces obstacles.
The adoption of contactless payments has grown exponentially in the country. According to Crevolution Magazine, this type of transaction increased 150% in the last year, driven by a growing demand for fast, secure, and frictionless solutions. Today, technologies such as QR, SPEI, and NFC are shaping the new face of banking and retail.
The retail sector has been one of the biggest beneficiaries, with convenience stores, supermarkets, and restaurants already integrating terminals with this function. According to Jaime Márquez Poo of the Transfer and Payment System, who spoke to the aforementioned outlet, these technologies are “driving the creation of new fintech companies that promote innovation and reach more and more people.”
To find out if your card has this technology, you should look for the curved wave symbol (similar to the Wi-Fi symbol lying down) and also on the merchant’s terminal. If both are present, you just need to hold your card or device close to complete the purchase.
Source: xataka
