The benefits of NFC and contactless payments are clear – they’re fast, easy, and secure. Here we look at how these new technologies might benefit business users, but in reality, the advantages are just as relevant for individuals who want to speed up their daily commute or enjoy a hassle-free trip to the shops.
NFC is the technology that drives contactless payments. Contactless payments are made using smartphones and smartwatches equipped with NFC chips. If you want to know how to use NFC for payments? here is your answer. Contactless payments are easy to use, as you simply tap your smartphone or smartwatch against an NFC reader to deduct funds from your account. Overall, contactless payments are safe and secure, even in crowded locations or places infected with the Covid-19 virus.
Near Field Communication (NFC) is a short-range wireless technology that is being used in mobile phones and other electronic devices. It replaces the need for physical contact in order to transfer information. NFC-enabled devices use radio frequencies to communicate with each other but are unable to connect over large distances like other technologies such as Bluetooth. By utilizing NFC cards, stickers, and mobile devices, companies have begun to create contactless payment systems and launch applications to store NFC data on smartphones.
The three modes of transfer in NFC are Peer-to-Peer, Reader/Writer, and Card Emulation. Peer to Peer Mode transfers data between two NFC-enabled devices without the involvement of an intermediate device. In this mode, both devices are able to communicate at the same time and may be used for file transfers from one device to another. In the Reader/Writer Mode, one device acts as a passive receptor for data being read from a second device that is set in active mode or initiator mode. A card emulation mode is a mobile payment app that allows you access to Internet banking facilities through your phone.
If you want to use NFC to pay, your device has to be near the contactless payment terminal, which is usually integrated into the POS. The machine will send a signal over the air, which you can accept with your NFC-enabled card or app. When customers view the contactless or wave signal in the POS terminal, they know that the card reader is NFC-enabled and can pay using NFC-enabled apps or cards.
There are several ways to make contactless payments. The first one is through mobile apps. The customer has to open the NFC-enabled payment app and choose a payment method. Once the customer has chosen the payment type, they simply wave or tap their electronic device over the NFC-enabled POS terminal to complete the transaction. NFC payment transactions between a mobile device and a POS terminal use ISO/IEC 14443 standard. A wallet on an NFC-enabled mobile device is a software application stored on the mobile phone that manages and initiates payments. This initiates an electromagnetic induction link between the device and the POS terminal. Each NFC transaction generates a one-time unique code, and the user’s card details are stored in an encrypted format in wallets.
The second method of contactless payment is via NFC-enabled contactless card. Customers can simply wave or tap over the card reader and their transaction will be done. As compared to smart cards, contactless cards are similar to bank and credit cards, but with an embedded chip that can store data and power itself on a near field communication (NFC) radio signal from a merchant’s point-of-sale terminal when it comes within 4 inches/10cm of it.
Contactless payments are the most convenient method of making purchases. NFC is a great way for businesses to accept digital payment solutions. The various advantages of contactless payment technologies are made possible by the use of Near Field Communication (NFC) technology which enables your mobile phones to transmit data to a POS terminal, or a card. By simply touching your device against the POS, you are able to make payments with ease.