ELI5: Explain Like I'm 5

Contactless smart card

Okay kiddo, have you ever seen those special cards that you can use to get into a building, pay for things or travel on a bus or train without needing to swipe it or put it into a machine? That is a contactless smart card and it is different from a regular credit card.

You see, when you use a regular credit card, you have to insert it into a machine or swipe it through a reader so that the machine can read the information on the card. But with a contactless smart card, you just hold it near the machine and it can read what's on the card without you having to physically touch it to the machine. How cool is that!

Now, let me explain how it works. The card has a special chip inside it that communicates with the machine using something called radio frequency identification (RFID) technology. This means that the machine and the card can talk to each other using invisible radio waves, just like how a walkie-talkie works.

When you hold the card near the machine, the radio waves from the machine power up the chip inside the card and it sends information back to the machine. The machine then knows who you are or how much money is on the card, and it lets you into the building, pays for your shopping, or lets you travel on the bus or train.

So that's all there is to it, a contactless smart card is just like a regular credit card, but it uses special technology to communicate with machines without needing to touch them. Cool, huh?