Mobile phones play crucial roles in our lives. We use them to communicate, do fun activities, and keep up with others on social platforms. It is no surprise that paying for items with a smartphone is gaining traction. NFC is becoming increasingly popular, and businesses are adopting it to streamline customers’ purchasing processes.
What Is NFC?
Near field communication (NFC) is an innovation that facilitates the connection and communication between two close devices, such as your smartphone and an NFC card terminal. It supports contactless payments. For example, Android Pay, Apple Pay, and Samsung Pay are some NFC mobile payments examples.
How Does NFC Work?
The NFC technology enables two close gadgets to communicate wirelessly. The solution belongs to the broader category of radio frequency identification (RFID). RFID is the innovation that helps us identify items via radio waves, and it has extensive applications.
NFC technology pioneered in the early 2000s, and it uses a specific RFID frequency of 13.56MHz for close-range exchanges. It has many applications, including contactless payments and limiting access to buildings to those with appropriate passes.
Contactless payments are transactions that involve paying for items with no contact. You don’t pay with actual cash, and your device doesn’t touch the NFC credit card terminal. Clients pay by tapping their smartphones or putting them close to the NFC card terminal.
NFC is the technology that enables these close devices to communicate. You hold the smartphone about two inches from the reader. The payment process starts when you place or tap the mobile gadget close to the terminal. The reader and the device use the unique frequency to exchange encrypted information to complete the payment process in seconds.
Top Payment Apps
Some of the leading NFC payment programs are:
- Google Pay: This NFC payment application is for Android-powered devices. Users can tap and pay in vending machines and stores. Use it with most credit and debit cards, such as American Express, Discover Cards, etc. You may also use this program with cards from major banks, including Citi, Wells Fargo, and Bank of America.
- Apple Pay: Since its introduction in 2014, Apple Pay continues to be a popular NFC payment app for people with compatible devices. You may use it with iPhone 6 and later systems, recent iPads, and Apple watches to make contactless payments. Apple Pay’s Touch ID boosts security, and it comes with tokenization. Clients’ devices transmit tokens to sellers instead of the card information.
- MasterCard PayPass: This NFC solution is in MasterCard’s banking cards. Users can tap and pay for items sold by sellers with the PayPass terminal. Each payment has unique electronic encryption to reduce the risk of losing the card and protect the user’s data.
- Visa payWave: This technology enables users to make secure and quick purchases at stores that accept their cards. Its integrated computer chip sends the payment details to the point-of-sale reader.
You can also accept NFC payments through NFC credit card terminals. At Payline, we offer a wide variety of such terminals.
Benefits of NFC Payments
- Security: This payment method is more secure than carrying cards. The digital wallets tokenize your bank information into something inaccessible and worthless to fraudsters. Tokens change for each NFC payment, making it challenging to extract them. Some solutions have fingerprint technology, adding an extra security layer to the transactions.
- Faster: Exchanges between NFC-linked devices are faster than chip, cash, or PIN card payments. Users only tap or place the device close to the reader for the payment transaction to happen. Merchants don’t have to wait for customers to input their details or search for money.
- Convenience: Users can make payments by tapping or putting their device close to the reader. They don’t have to carry cash or cards. The payment process is also straightforward.
How To Set Up an Account
Customers follow various procedures to enable the NFC payment solution. Most modern devices have this setup, and one can activate it from their smartphone. Merchants need NFC card terminal readers to accept NFC payments. They can buy them from various outlets or ask the relevant companies for guidance on getting them.
As technology continues to evolve, businesses that leverage the developments will prosper. One development that can help is the NFC payment solution. Getting an NFC card terminal can help companies accept NFC payments. These transactions are fast, secure, and convenient for businesses and their clients.