Contactless payments dont require any physical contact between the buyers smartphone or credit card and the POS. The technology that powers contactless payments through a type of radio frequency identification (called RFID) The data associated with your credit card on file is encrypted and constantly changing. Even if fraudsters were to hack a system, the data they found there would be useless. The most talked-about example of contactless payment is Apple Pay, which works on the iPhone 6, 6 Plus and the Apple Watch.”]
Source: https://squareup.com/us/en/townsquare/what-is-a-contactless-payment