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For those of us stuck in 2007. Can you briefly describe how the contactless payment works ?

You just hold the card over the screen and it reads (I believe) an RFID chip in the card. No swiping or card insertion required.

And it's much faster most of the time.

How do you know if your card supports it? Try it and see if it works?

I had no clue until a cashier did it for me in a European country. There may be a little logo like this either on your card or on the materials when you get your card: https://en.wikipedia.org/wiki/Contactless_smart_card#/media/....

Once it was demonstrated to me, I went back and found out the cards I've had since 2013 (pre-chip).

RFID Cards or NFC from your phone. Hold your payment method near the reader and it pulls the card info wirelessly.