The technology that allows contactless payments relies heavily on which principle?

The principle that contactless payments rely heavily on is short-range communication. This technology utilizes methods like Near Field Communication (NFC) or Radio Frequency Identification (RFID) to facilitate transactions without having to make physical contact between the payment device and the terminal.

In contactless payments, when a user taps their card or mobile device near a payment terminal equipped with NFC, the two devices communicate over a very short distance, typically within a few centimeters. This quick and efficient exchange of data allows for a seamless payment experience for consumers, contributing to the convenience and speed of transactions.

While other technologies like cloud computing, mobile broadband, and data encryption play important roles in supporting various elements of digital transactions — for example, cloud computing enables backend services and data storage, mobile broadband provides connectivity, and data encryption secures the transaction details — the core mechanism enabling the contactless nature of these payments specifically hinges on short-range communication.