NFC (Near-Field-Communication) is a technology that allows two devices (a phone and the Point of Sale machine) to communicate with each other by sending small amounts of encrypted data. This enables contactless payments.
Many big retailers in India like to use the NFC technology at their outlets. Visa issued over a million NFC cards and has more than 100,000 merchants enrolled in the NFC program.
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What is Magnetic Stripe Technology?
Magnetic Stripe Technology is the most popular way to process payment gateway globally. A cardholder swipes his/her bank debit or credit card through a POS machine, which reads the magnetic stripe on the card, which contains information about the cardholder’s account details, including their name and bank details (account number). The POS machine then verifies this information before processing the transaction.
With the ever-growing popularity of smartphones, it was inevitable that they would be used as a payment method. NFC (Near Field Communication) is a technology that allows two devices (a phone and the Point of Sale machine) to communicate with each other by sending small amounts of encrypted data. This enables contactless payments.
Many big retailers in India like to use the NFC technology at their outlets. Visa issued over a million NFC cards and has more than 100,000 merchants enrolled in the NFC program.
NFC is one of the most secure methods of making payments because it uses encryption to transmit data between devices. It’s also extremely convenient because all you need to do is tap your phone against a terminal at POS machines or shops to make a payment. Your smartphone will also detect NFC tags which contain information about things like opening hours at stores or events happening nearby.
How do NFC payments work?
NFC (Near Field Communication) is a subset of RFID (Radio Frequency Identification). It uses a particular frequency (13.56 Hz) for close-range communications. You can just hold or tap a mobile device at a Point of Sale machine and your payment will be done. You don’t even need to enter an OTP or PIN Number!
To understand how NFC payments work, let’s use the example of Apple Pay. Available to Apple users, they use a technology called tokenization, to help safeguard your card details. All you need to do is, download the app and upload a picture of your card.
NFC payment is easy and convenient but it does have some limitations as well:
You need a compatible device for NFC payments. And if you don’t own one, there is no way you can make use of this technology.
Should you choose NFC payments?
NFC payments are not for everyone. While NFC payments may sound like the future and the most secure way of payments, there are some problems that may make you reconsider. There is no two-factor authentication of payments, which still makes it vulnerable to hacks. What’s more? They are great for a physical goods seller.
NFC payments are not for everyone
While NFC payment may sound like the future and the most secure way of payments, there are some problems that may make you reconsider. There is no two-factor authentication of payments, which still makes it vulnerable to hacks. What’s more? They are great for a physical goods seller.
NFC Payments: The Future of Mobile Payments?
NFC (Near Field Communication) is a short-range wireless communication technology that allows two electronic devices to communicate by touching each other or bringing them within range (usually less than 10 cm). NFC uses inductive coupling between an NFC tag and an antenna loop embedded in various objects such as stickers, smart posters and labels; print products like magazines; mobile phones as well as credit cards etc.
There are many benefits to using NFC tags when compared with traditional barcodes including: increased speed of processing data at all levels.