5 Things to consider before accepting payments through NFC payment apps
The last few years have seen some tremendous technological advances in the field of finance and payments. Technological interference has completely changed the way we pay today. With internet banking, mobile banking, and mobile payments, we are no longer dependent on cash.
According to stats, the global NFC market was estimated at $4.8 billion. The experts also predicted 10 times growth in the field which will make its estimated value of $50 billion by the end of 2024. If you are keen to invest in NFC mobile payment apps for your customers, here’s how you can consider important things about NFC payments.
What are the NFC payments?
NFC payments solution is contactless payments that use near-field communication (NFC) technology to exchange data between readers and payment devices, such as PayPal and Android Pay and Wallet or EMV chip cards. NFC devices must go through to complete an NFC payment, usually less than 2 inches, and payments are encrypted and very secure.
How do NFC payments work?
When payment and reader devices are locked and activated simultaneously, NFC chips exchange encrypted data to complete the payment. This process creates a lightning-fast checkout flow which is a convenient and secure method of payment. Because of this, NFC-based payments, such as Apple Pay and Google Pay, are fast becoming the preferred method of customer payment.
A wireless or “contactless” connection between two devices uses radio waves, such as radio-frequency identification (RFID), used in stores, warehouses, and other wireless tracking applications. NFC chips use a specific RFID radio frequency (13.56 MHz) that only works when the chips are very close.
For added security, eWallets communicate with NFC readers only when the user unlocks the app on their device, selects the payment card to use, and completes the payment action. As shown below, the iPhone uses secure thumbprint or face recognition to unlock payment screens while Android devices use screen codes.
Accepting NFC payments is easy and convenient
When the EMV chip card first appeared, one of the concerns, was a new step in the checkout process. The “needle” (and wait) process was a bit cumbersome for first-time customers. Regardless of how long it actually takes, customers felt the drowning process would take longer.
Proceed to unpaid mobile payments and voice subscribers can take a dip. For small transactions, contactless payment can also leave swipe, sign, and pin. Contactless payments usually take less time than chip card transactions. And customers generally hate to wait for a second, so less time per transaction means customers are happier.
The digital payment solution is a natural extension of the smartphone trend, a device that caters to every need of the modern consumer. The convenience of that consumer is the convenience of the action, leaving their wallet behind their smartphone just to pay for the purchase.
Mobile payment technology is designed to be stable and secure
As EMV chip cards, mobiles are more secure than late magnetic stripe cards. While the phone is still vulnerable to theft, the device will become useless for thieves unless passcode or biometric security is activated.
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With a mobile wallet, the customer’s payment data comes out only after the card information is entered in the mobile wallet. This information is then encrypted, so that every time a customer taps on their mobile wallet to make a payment at an NFC-enabled terminal, “virtual” payment data (which does not contain real card information) is sent to the payment device. Full card number not disclosed. When this virtual data is passed through the payment terminal, it is immediately encrypted by the merchant payment processor using Payment Card Industry (PCI) approved methods.
In short, there are two levels of security in the data involved in NFC Mobile and let transactions: 1) the device itself and 2) data encryption. If you think about it, it’s much safer than carrying around a physical card that can be easily stolen and used.
Smartphone payment is the new normal
Explosive growth in mobile technology could raise new customer expectations, which are higher than ever. Then whether you call it the “Amazon Effect” or something else, what smart merchants are learning is that every merchant expects the same price and the “best” level of service as the customer.
Fans, cartoonists and filmmakers have long offered many versions of what commercialism looks like from now on. Today’s reality is far beyond the imagination of many progressive thinkers. Customers around the world have insisted on not only their comfort with mobile payments but every available option during checkout. Paying from a smartphone is just a new customer.
Accepting mobile payments often increases customer engagement
The merchant and the customer are on the same page at the time of payment: both want the transaction to be fast, easy, safe, and convenient. In addition to the obvious benefits of ease of use and increased security, accepting mobile payments helps build and maintain reliable links with customers.
Merchants also benefit from NFC as it provides an opportunity to integrate customer loyalty programs more effectively into the payment process. For example, customers can redeem coupons instantly from their phone tapes.
The NFC Loyalty Program can also help merchants gather useful analytics on their customer base and locations. Depending on where the coupon is used, merchants can determine the most profitable time of day or the places that receive the most traffic.
Commerce-on-the-go is the new future
Commerce-on-the-go is a new reality. The smartphone is an ambassador of convenience and a universal translator in the world of mobile commerce. This is the time for retailers to capture this time and create consistently amazing experiences that delight customers.
Consumers hate waiting, and they hate lines. They value speed and personalization. Accepting mobile payments addresses customer pain issues and opens the door to engagement levels. The ability to pay via smartphone can make customers happy. Happy customers are always more loyal customers. Happy customers can help your business succeed.
As NFC technology continues to grow in popularity, accepting credit card payments through contactless methods has become an important component of many businesses’ personal sales strategies. NFCs are the safest, most secure way to make payments adopted by more and more users, and by upgrading your system to take these payments through NFC payment apps, you will notice that your business is ready to grow over time.
Nikunj Gundaniya, Product manager Digipay.guru, one of the leading digital wallet app development company the USA, which provides mobile finance application development services. He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.