Across the globe, there has been an increased adoption rate of NFC payments due to the COVID-19 pandemic. NFC payments are highly secure, encrypted, contactless, and can help speed up the checkout process. NFC payments use near-field communication (NFC) technology to exchange data between readers and payment devices like Google Pay and Apple Pay e-wallets in smartwatches and smartphones, or tap-to-pay debit and credit cards. Conversely, the NFC devices must be close together to complete these contactless payments. You need a specialized card reader to accept these payment types.
How does NFC payment work?
The NFC chips exchange encrypted data to complete a payment, when payment and reader devices are close together and activated. The process creates a fast and convenient checkout flow and is one of the most secure payment methods. Google Pay and Apple Pay, NFC-driven payments, are becoming a fast and preferred consumer payment method. The contactless connection between the two devices uses radio waves similar to RFID labels. NFC chips use a specific RFID radio frequency of 13.56 MHz. This only works when the chips are very close together. E-wallets only communicate with NFC readers when the e-wallet user unlocks the app on their device, selects the payment card to be used, and completes the payment action, for added security. To accept NFC payments, you’ll need to get a new NFC-enabled payments reader.
Benefits of NFC payments
1. Increased security
Compared to swiped card payments, NFC technology is more secure. The technology has contributed to a decline in in-person credit card fraud. NFC mobile payments are one of the most secure ways to pay as they are dynamically encrypted. Compared to other forms of payment, tap-to-pay technology is more secure and reliable. Through dynamic data technologies and encryption, the chip technology will protect you against any fraudulent purchases.
2. Ease of use
Shorter queues at the checkout and quicker transactions are the most significant advantages of NFC payments. Also, at the checkout, handling cash is not a concern and you don’t have the hassle of punching in your PIN.
3. Faster checkout process
Contactless payments are faster than other in-person payment options. NFC transactions take seconds, therefore, a huge plus for businesses as fast transactions mean more sales.
4. Better customer experience
Businesses that use the contactless payments method have earned their customers’ loyalty due to a smoother and quicker checkout experience. To improve customer relationships, stores can also optimize their loyalty programs.
5. Convenience
NFC technology reduces the need for shoppers to carry a card in wallets and purses. The technology allows shoppers to store multiple debit and credit cards on their mobile devices. NFC-enabled contactless payments are the most convenient way to pay nowadays because more people have phones.
6. Fraud protection
NFC payment technology is encrypted and secure to discourage any hacking attempts. Businesses get their money without any disputes due to better transaction security. Also, contactless payments are protected against fraud by most issuing banks.
7. Better operational efficiency
With lesser workforce requirements, adopting tap-to-pay technology is faster. NFC payments reduce the time that businesses spend on counting cash or operating card machines.
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