NFC mobile payments are contactless digital payment solutions that allow smartphones, tablets, and credit cards to communicate with NFC-enabled scanners. As a result, businesses may swiftly and efficiently take customer payments with NFC technology, which eliminates the need for personnel to touch cards.
Retailers, restaurants, and service providers can benefit from NFC mobile payments, a convenient way for customers to pay for goods and services. However, those who accept NFC payments should be prepared to pay fees comparable to those associated with traditional credit card processing (a few cents per transaction, plus a small percentage of the transaction value).
Even though most of the top NFC-enabled credit card readers are on the market for $50 to $150, some organizations may still need a specialized reader. Near Field Communication (NFC) is a global market expected to grow from 2014 to 2024. A total of 4.6 billion U.S. dollars was spent in the global NFC market in 2015.
From 2014 through 2020, this graph displays the worldwide distribution of NFC-enabled and non-NFC cellular phone shipments. NFC-enabled smartphones will account for 66% of global cell phone shipments in 2017.
How does NFC work?
NFC stands for Near Field Communication. The term “near-field communication,” or NFC, refers to a wireless technology that allows devices within proximity to communicate and share data. In addition to critical fobs for access control systems and ID verification, NFC can also be used to couple wireless devices.
NFC is a simple technology to work with. A magnetic stripe credit card and an NFC mobile payment system are similar. NFC payments can already be made with many card readers. Instead of reading a card’s magnetic stripe, an NFC reader sends a signal picked up by an NFC antenna on an NFC-enabled device to begin a transaction.
Are NFC mobile payments safe and secure?
An NFC-enabled reader is required for NFC payments. An NFC-enabled payment device can be located using a signal sent out by the reader when a POS system activates it. An NFC-enabled device, such as a phone or a credit card, will send its payment information to the reader when it detects its antenna.
How to deal with NFC payments on mobile devices?
An NFC mobile payment setup is a reasonably straightforward process. First, you’ll need to find a payment processor with NFC capabilities to get started. Then, a merchant account with a bank or processing provider will be established, and the NFC reader will be connected to the card reader.
There are six essential processes involved in getting NFC payments up and running:
- Choose a payment method.
- Select a reader with NFC capabilities.
- The reader and associated software must be installed before you can begin using it.
- Third, obtain access to the web.
- Create a merchant account.
- Payments are accepted.
In the same way that credit card transactions are processed, NFC payments will be deposited immediately into your merchant account. The next day, these funds are usually automatically deposited into your company bank account, although you may need to execute transfers to track your account balance manually.
The leading credit card processors now offer businesses the equipment to take NFC payments, so you don’t have to worry about it.
NFC-enabled Enterprises
A wide range of businesses can benefit from NFC payments. Although they aren’t always the only choice, customers and corporate personnel alike find them a tremendous benefit, especially for organizations like stores that handle many payments each day.
- Brick-and-mortar retailers include, for example, apparel boutiques, antique shops, and stores selling household items.
- Street sellers, flea market booth operators, and other mobile business owners fall under this category.
- Carryout businesses, such as restaurants and food trucks, can benefit significantly from NFC.
- NFC makes life easier for medical professionals like dentists, therapists, and pharmacists.
- This includes gyms, personal trainers, and other recreational facilities that cater to individuals.
- Using NFC to organize events or process donations for mobile fundraisers is a terrific option for charities and non-profits.
- Lawyers and accountants may not take NFC payments, but many other types of professional service providers do.
Other benefits of using the NFC payment app:
- Your business can benefit from the speed and convenience of the NFC payment app.
- Card readers and other devices can communicate over a short distance using NFC technology.
- Android phones, iPhones, laptops, tablets, and smartwatches can all take NFC payments and NFC-enabled credit cards.
- Businesses find NFC to be convenient and risk-free.
If you’re an entrepreneur or a company that doesn’t accept credit cards, NFC payments may not be the best option. Offering NFC may be advantageous if you currently accept credit cards. However, if you are a consultant or run a cash-based firm, NFC may not be helpful to you at all.
A list of NFC-enabled mobile payment devices:
An NFC reader is required for businesses that wish to accept payments via NFC. In addition, companies can accept payments from various devices once they’ve installed an NFC reader in their point of sale system.
- Mobile payment apps are available for both Android and iPhone.
- NFC is typically supported by smartwatches that have a wearable operating system.
- Tablets, like smartphones, can be NFC-enabled, but they’re a little more cumbersome to use while making a transaction.
- Using a laptop to process a payment would be cumbersome, but it is technically conceivable.
- As of today, most major credit and debit cards contain EMV chips that support NFC technology. As far as contactless payment methods go, this is the most widely used.
Conclusion
NFC is a great technique to handle payments because of its small size. With NFC-enabled smartphones, businesses may process payments without employees conducting clients’ cash, checks, or credit cards.
For NFC payments to work in your store, you’ll need a reader that supports NFC payments. NFC payment readers can be purchased at reasonable prices from small business payment processors for startups and small to mid-sized merchants.
