Over the years we have seen some tremendous technological advancements in the field of finance and payments. The intervention of technology has totally changed the way we make payments today. With internet banking, mobile banking, and mobile wallet payments, we no longer are dependent on cash. With time, we are witnessing new technologies being used to make the payment experience better than ever. And one of these technologies is NFC.
Near Field Communication (NFC) has become a more common term in the payments industry over the last few years because it’s the technology behind mobile payments. But what exactly is NFC and how does it work? Let’s start with a definition, and then we’ll get into what are the benefits of accepting NFC payments.
NFC is a method of wireless data transfer that allows smartphones, laptops, tablets, and other devices to share data when in close proximity. NFC technology powers contactless payments via mobile wallets like Apple Pay, Android Pay, as well as contactless cards.
In 2015, the global NFC market size was valued at $ 4.80 billion and it’s about to increase 10 times by the year 2024 with an estimated valuation of $50 billion.
Let’s take a look at some of the questions business owner may have in regards to NFC:
How do I accept NFC? To accept mobile wallet payments, merchants need a payment terminal and reader that are NFC-enabled, and a payment processing plan that accepts mobile wallet payments.
Is NFC secure? If you’re wondering about the security of near-field communications, that’s understandable. Maintaining the trust of your customers depends on providing safe transmission for their payments and any data related to payment transactions. The security of near field communication technology starts with “near”—NFC signals only transmit data centimeters from the NFC device, like a payment terminal. Unlike wireless internet technology, near-field communication signals can’t be hacked from across town, across the street, or even across the room.
How does NFC Payments Work? When both reader and payment devices are close together and activated, then there is an exchange of encrypted data from the NFC chips which complete the payment. This process makes the checkout flow lightning-fast, thus making NFC payments as one of the most secure and convenient payment methods. This is the reason why NFC-powered payments such as Android Pay and Apple Pay are becoming a preferred payment option for consumers. The contactless connection between the two devices is established with the help of radio waves which are similar to RFID labels that are used in warehouses, stores, and other wireless tracking applications.
That being said, now let’s take a look at the benefits of accepting NFC payments:
- NFC technology comes with a range of security features that help protect financial data from criminals.
- Merchants and consumers are on the same page when it comes to payments: both want transactions to be fast, easy, secure, and convenient. Beyond the clear benefits of increased ease of use and enhanced security, accepting mobile payments helps build and maintain a trusted link with customers.
- Consumers hate to wait, and they hate lines. They value speed and personalization. Accepting mobile payments addresses key customer pain points and opens doors to deeper levels of engagement. The ability to pay by smartphone can make customers happy. Happier customers are often more loyal customers. Happier customers can help fuel the success of your business.
So if you are a business owner that has yet to update your business don’t wait any longer and contact us for more information, ABPay is well prepared to equip any business with NFC-enabled terminals so that they can take advantage of said benefits.