How do contactless payments work? Tap to pay explained
By SendPay Business · · 2 min read
Contactless payments let people pay by holding a card, phone or watch near a card reader. A small chip and antenna in the card talk to the reader over a very short distance, and the payment is approved in a second or two.
What happens when you tap
- The reader and the card or phone exchange payment details over a short-range radio link.
- A one-time code is created for that payment, so the details can't simply be copied and reused.
- The payment is sent to the card issuer for approval, just like any other card payment.
The UK contactless limit
The standard UK limit on a single contactless card payment rose to £100 in 2021. Since 2025, card providers have been allowed to set their own limits, and some ask for the PIN now and then as an extra check. Phone and watch payments are confirmed with the device's own security, so they often go higher.
Taking payments without a card machine
Not every business needs a card reader. Payment links and invoices let customers pay by card on their own phone, which suits mobile traders, services and online sales.
Where SendPay fits
SendPay doesn't sell card machines. Its platforms include payment links, invoicing and branded cards under your own brand, powered by licensed partners. You can preview your platform before you pay.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.