Paywave vs Pin: Which Is the Better Payment Method?
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Have you ever experienced a situation where the cashier asks whether you would like to use paywave or pin when making a payment at the counter?
As you may know, if you choose to pay using pin, you need to enter your pin number.
Meanwhile, if you want to use paywave, the cashier simply needs to ''tap'' your card without requiring pin verification.
In line with the advancement of technology, the banking world has also not been left behind in introducing several changes.
Previously, if you wanted to transfer money from your account to someone else''s, you had to go to the bank to make the transfer manually.
But now, money transfer transactions can be done at your fingertips through online banking.
Similarly, the introduction of electronic cards is seen as making daily transactions easier without the need to carry cash.
The similarity between paywave and pin is that both speed up the payment process compared to cash payments.
This makes the payment process at the counter easier when customers are queuing up.
So, other customers do not have to wait as long.
So, between paywave and pin — which do you choose?
Here are some differences between these two payment methods.
Handling Method
If you use paywave, the cashier only needs to scan or tap your card on the reader.
Meanwhile, if you use pin, the cashier will ask you to enter your pin number to verify the transaction.
So, it can be seen that using paywave is faster compared to pin.
Maximum Limit
Paywave only allows a maximum transaction limit of up to RM250.
However, you can request your bank to set a different amount for this limit.
Meanwhile, for pin usage with debit cards, the maximum daily transaction limit is RM5,000.
Purchase Amount
If you are shopping with a small quantity of items, then paywave is suitable as a payment transaction option.
However, you are advised to pay using pin if you are making purchases with a large amount.
Access Control
For every transaction using pin, you need to enter your pin number as consent for the transaction.
This means you control your spending under your own supervision. So, you know when your money goes out.
Meanwhile, with paywave, you cannot control spending if you hand your card to someone else, such as a family member.
Anyone can ''tap'' your card if they use it and the purchase transaction is accepted.
Indeed, there are still negative perceptions about paywave regarding security issues.
Bank Negara Malaysia has affirmed that the paywave system is safe and equipped with security features that prevent it from being cloned or used for transactions not authorised by the cardholder.
Cards based on contactless transaction technology, Paywave, cannot be counterfeited as they are equipped with security features certified by the international banking industry.
For example, if you give your card to a family member, you will receive a notification to verify the transaction made by them.
If you find that there are suspicious payment transactions, you can make a report to the relevant bank and the card will be cancelled immediately while its usage will be traced.
Therefore, it refutes the claim that paywave provides opportunities for electronic pickpocketing threats.
More than 3 million contactless transactions per month were recorded in a survey conducted by Visa Inc.
This shows that the electronic payment system has been growing over the past decade as a result of technological development in the banking and online business industries.
The use of this system is seen as safer, easier, and its transactions can be traced. Moreover, it can also reduce cashier errors during payments.
Nowadays, various sectors and industries offer electronic payment system services in line with consumer needs.
For example, the public transport industry such as RapidKL has started accepting cashless payments. Users are also encouraged to use this system to reduce congestion and ensure smooth operations during peak hours.
However, the use of electronic payment systems is seen as not yet accepted by all business sectors, especially in rural areas.
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Paywave uses contactless technology that only requires tapping your card on the machine, while pin requires you to enter a 6-digit secret number to verify the transaction.
Yes, paywave is safe because every transaction is encrypted, limited to a certain amount (RM250), and any suspicious transactions can be reported to the bank for immediate action.
The maximum limit for each paywave transaction in Malaysia is RM250. For purchases exceeding this amount, you need to use the pin or signature method.
Electronic payments encourage digital economy growth, improve business transaction efficiency, and open investment opportunities in the fintech and banking sectors on Bursa Malaysia.
The development of electronic payment technology opens investment opportunities in the fintech and banking sectors — smart investors need to follow this trend.
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