A contactless card is a physical card that is part of a contactless payment system, which offers more convenience than traditional point-of-sale payment systems where customers use standard debit or credit cards.
Techopedia explains Contactless Card
A contactless card has a built-in radio-frequency module that allows it be processed without being swiped through a magnetic stripe reader. As a result, the user does not have to swipe the card, but simply hold it up close to an RFID reader.
Contactless cards have been a traditional part of certain purchase systems, such as highway toll systems. Many companies also use contactless card systems for security, which allows an employee's ID badge to unlock doors or facilitate security access just by placing it near an RFID reader. However, these kinds of systems are now making their way into retail, to make buying more convenient for the average consumer.