Australians have overwhelmingly embraced new contactless card technology – also known as Tap & Go – to buy everyday items.

Convenience and speed make contactless transactions a popular payment choice for consumers. So popular that a whopping 70 per cent of adults have a contactless enabled debit card, according to statistics from financial services business intelligence firm RFi.

Talk of a cashless society may not be as futuristic as it sounds. Along with smartphone payments, contactless cards are replacing traditional cash transactions. A 2014 survey by the Reserve Bank of Australia found contactless cards account for 22 per cent of face-to-face card transactions.

So how does this revolutionary technology work?

Contactless cards are embedded with tiny near-field communication (NFC) chips, which send radio frequencies to payment terminals. The wireless communication allows users to simply hover or tap their cards above the terminal. A confirmation message appears on the terminal and you’re on your way.

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Contactless technology is now so common, it’s found at supermarkets, cafes and petrol stations. MasterCard estimates almost 250,000 terminals in the Australian market are equipped with contactless readers.

Financial security is a concern for some people reluctant to use contactless cards. However, several features make these cards reliable and safe.

To protect against thieves trying to wirelessly pickpocket contactless card holders, all NFC cards feature secure encryption technology. It’s also comforting to know many debit cards come with a zero liability policy which may cover you for unauthorised transactions.

Also, contactless purchases are designed for small amounts, so any transactions over $100 must be made with a PIN.

Contactless transactions [some merchants charge fees] make shopping a fast, easy experience. Now ME makes Tap & Go payments even more attractive with a 5 per cent cash-back offer on Tap & Go payments.

Holders who open their first ME EveryDay Transaction Account before June 30 this year receive 5 per cent cash-back on Tap & Go purchases for the first six months . It means you can save while you spend.

The ME EveryDay Transaction Account is a smart option for savers with no monthly account-keeping fees, EFTPOS fees or debit card fees. Plus cash can be withdrawn from more than 3,000 ME, Westpac, St George, Bank of Melbourne and BankSA ATMS across Australia.

This content was sponsored by ME. Fees and charges apply to the EveryDay Transaction Account. Terms and conditions available on request. Consider if this product is appropriate for you. Cash back conditions and fair use policy applies. Tap & Go is a trademark of MasterCard International Incorporated. For more information, go to mebank.com.au or click the logo below: