As more consumers seek convenience and speed with payments, the more NFC contactless transactions are likely to continue trending this year. It provides businesses with an easy and cost-effective way to apply for contactless payments on their establishments, and the technology is versatile for any industry to adopt and implement. QR codes may have helped revolutionise quick and easy cashless payments, but NFC continues to thrive for the convenience it brings to contactless payment terminals and smartphone users. NFC technology gives discerning customers the option not to carry cash and credit or debit cards any more when they can simply pay with a single tap of their smartphone on NFC-enabled payment terminals.
Mobile payment allows customers to make a transaction with their mobile device, such as the smartphone. It continues to be used in an array of settings, including retail establishments, hospitality, restaurants, and bills payments due to the convenience they provide. NFC contactless payments have helped this trend thrive, and it is expected to become more widespread as more businesses accept this quicker mode of payment. With this solution, businesses can provide a smoother shopping or payment experience.
NFC stands for ‘near field communication’ and it is a means of wireless data transfer between an NFC tag and a compatible device to share data when they come in close contact with each other. The technology empowers contactless actions, like mobile wallets (i.e. Android Pay and Apple Pay) and some contactless cards. NFC contactless payments may be similar to RFID (radio frequency identification) technology, but they are limited to sharing information with other devices, as long as the proximity is within four inches. For this reason, you need to hold your device closer to the NFC reader.
Bluetooth may also sound similar to NFC, but the difference lies in the absence of device discovery and manual syncing. Moreover, NFC contactless payments use less power and provide more versatility. For instance, they can be set up as peer-to-peer sharing, read/write, or as a means for card emulation.