Which payment system uses radio-frequency identification for transactions?

The payment system that utilizes radio-frequency identification (RFID) for transactions is the contactless card. This technology allows users to make payments simply by tapping their card on a reader equipped with an RFID scanner, enabling quick and convenient transactions without the need to physically swipe or insert the card.

Contactless cards enhance the customer experience by speeding up the payment process, making it a popular choice in settings such as retail stores, public transportation, and events. The RFID technology ensures secure data transmission between the card and the payment terminal, which is designed to protect against unauthorized access.

Other payment methods mentioned, such as standing orders and direct debits, do not use RFID technology; they are based on scheduled bank transactions that require the account holder's authorization for payments to be made on a recurring basis. Packaged premium refers to a specific services plan or product offering and is not a payment system at all. Thus, it is the contactless card that distinctly uses RFID technology for seamless transaction processing.