Before credit cards, people used to carry cash and checks to buy essentials. With technological progress, credit cards have become more sophisticated and safe, with the chip replacing the magnetic strip.
And now, with NFC (near-field communication) payments, people do not need to get their credit card to make purchases. They only have to wave their smartphone near the reader, and the payment will be processed in seconds—all thanks to NFC technology.
People love this innovative technology because of its convenience and security. According to a recent study, nearly 80% of people use this contactless payment system. But what exactly is NFC, and how does it work? Keep reading to understand NFC payments better!
What is NFC Payment?
NFC payments are like magic for your devices! This allows your devices, like laptops, tablets, smartphones, and others, to share data wirelessly when they are close. Think of it as the power behind the great payments you make on your phone, such as using Apple Pay or Google Pay and even those quick card swipes.
How do NFC Payments work?
“The NFC, or near field communication, is a wise technology that allows two devices to chat when they come close to each other. NFC technology is derived from RFID technology, which uses radio waves to share information. NFC, invented in the 2000s, uses a specific frequency of about 13.56 MHz for near-range communication. For the past few years, NFC is gaining more popularity because of its use for contactless payments. Physical contact between the reader and the payment device is unnecessary in contactless payment. You have to hold your smartphone near the reader and can pay instantly
So, how did this magic happen? The technology starts to work as soon as the NFC-enabled payment device, NFC-enabled reader, and smartphone come closer. NFC payment devices and NFC-enabled readers should contain chips to facilitate data exchange. They share the encrypted information to process the payment. Here’s how to do it;
- Unlock your digital wallet app
- Choose a card to pay with
- Keep your phone close to the payment reader
A special chip, the secure element, validates and authorizes the transaction with a unique digital signature. And thus, the payment is processed, mimicking a card transaction. It’s like a secret handshake between your phone and the payment system, making the transactions smoother and safer! “
Examples of NFC Payments:
Apple Pay:
Apple Pay is a great example of contactless payment. This app allows you to store your credit and debit card info on your phone. When you go to any store, you just have to wave your phone near the reader, and you can pay without any hassle. In addition, the Apple Wallet allows you pay for online shopping.
Google Pay:
Google Pay is another convenient app that helps you to make contactless payments in stores and online. No more need to carry your credit cards! Google Pay uses a special encrypted number, which is linked to your payment card and keeps your information safe and make transactions very easy.
Samsung Pay:
Samsun Pay is a digital wallet, just like Apple Pay, where you can keep your credit and debit cards safe. When you are away, Samsung Pay allows you to make payments on your phone. But here is the bonus: it works in many places, not only where they accept regular cards. So, if you use a Samsung phone, you will have a digital wallet to make your purchases.
Advantages of NFC Payment:
NFC payment brings several benefits to both businesses and customers. Let’s take a look at some of them;
- Fast Checkout: NFC payment can be up to 10 times faster than other payment methods, ensuring fast transactions.
- Improved Customer Experience: People love ease, and NFC payments fit their choice. It provides them with convenient payment options.
- High-level security: NFC payments offer an additional safety layer. It provided safer and more secure payments than swiping cards on machines to pay.
- Versatility: NFC payments work in more places than traditional cards. You can enjoy the comfort of NFC payments if you are at your favorite local store or a good retailer.
- Perfect integration: The NFC is integrated with no difficulty in the way we pay, providing a great experience for both companies and customers. This is a mutual benefit for everyone involved! “
Are NFC Payments safe?
Yes! They are completely safe. You will better understand it after reading the following reasons;
- Close and authorized: your NFC-enabled device must be very close to the NFC reader, and you must say “yes” to complete the transaction.
- Digital signatures: All information on your payment is digitally signed, adding an additional security layer. Furtive things are not allowed!
- No card numbers: When you use your phone for NFC payments, your real card numbers mix. They get substituted with payment tokens.
NFC Security Features:
- User device: If you use an e-wallet, you may need to unlock it and select a card before paying. You can choose additional protection, such as passwords or antivirus software.
- Tech Magic: The NFC is like a caretaker of your information, which ses a secure channel and encrypts sensitive information, like credit card numbers.
Here is a trick: keeping many cards in your purse can be risky. If they get stolen, they may be misused. Having a smartphone with a face ID or unlocking fingerprints is a safer way to keep your payment information under a check! “