Over the last few years, NFC technology has become a more common term in the payments industry. The technology requires the devices to be in close proximity, about four inches, to share data wirelessly. NFC payments can be made using various form factors like cards or stickers. The technology powers contactless payments via mobile wallets like Google Pay and Apple Pay as well as contactless cards.
NFC stickers for payments
The primary interaction is usually between a device like a smartphone and a readable NFC sticker. This sticker is a small and unpowered object. The payment is possible because the reading device, often your smartphone, can generate a radio frequency (RF) field that will power the tag. NFC stickers communicate over radio waves between two devices- the NFC sticker and the NFC reader. An NFC sticker sends radio waves to activate the antenna in a receiving device. When a consumer is paying with their mobile wallet they must place their device close to the contactless payment reader.
Since the early days of the smartphone, android devices have supported NFC technology. However, iPhone models from the iPhone 7 and newer which are running iOS 14 and above now support contactless payments, the ability to read and scan NFC stickers, and the capability to write them too.
NFC stickers allow contactless payment services such as Apple Pay and Google Pay. Therefore, to pay with an android smartphone (Samsung) you will; open the Settings app, tap connections, tap NFC and contactless payments, tap the switch to turn NFC on, tap contactless payments, select your preferred mobile payment service (Google Pay) and follow the on-screen instructions to finish setting it up. On the iPhone XS or later device, the ‘Tap to Pay’ option is available that allows users to unlock contactless payment acceptance through a supporting iOS app. At checkout, the merchant will simply prompt the customer to hold their iPhone to pay with Apple Pay, and the payment will be securely completed using NFC technology. No additional hardware is needed to accept payments through Tap to Pay on iPhone. With the option, customers’ payment data is protected by the same technology that makes Apple Pay secure and private. Also, all the transactions made using Tap to Pay on iPhone are encrypted and processed using the Secure Element.
The Tap to Pay on iPhone provides businesses with a private, secure, and easy way to accept contactless payments. It also unlocks new checkout experiences using the security and convenience of iPhones.
Conclusion
Many businesses are embracing the NFC mode of payment because it’s secure and versatile. NFC mobile payments are dynamically encrypted making them one of the most secure ways to pay. NFC readers connect to only one NFC sticker at a time which minimizes accidental transactions. During NFC payments, encrypted data exchange happens between NFC chips. Some NFC stickers can be pasted behind the user’s phone to allow the user to tap and pay with their phone on selected terminals. These stickers have made payment easy as one doesn’t have to carry any additional cards for payment.