Near-field communication (NFC) is a short-range communications technology used for making payments and sharing data. NFC works by sending data over radio waves. It’s similar to Bluetooth and WiFi but it uses a different frequency. The NFC antenna in your phone or other device must be close to an NFC payment terminal or the card reader at a point of sale (POS).
Near-field communication has become a more common term in the payments industry over the last few years as it’s become a driver of mobile payments. But what exactly is NFC and how does it work? Let’s start with a definition and then we’ll get into seven things to know about accepting NFC payment In India.
What are NFC payments?
NFC, or Near Field Communication technology, is a method of wireless data transfer that allows smartphones, laptops, tablets and other devices to share data when in close proximity. NFC technology powers contactless payments via mobile wallets like online pay, as well as contactless cards.
NFC is an extension of RFID (radio frequency identification) technology that uses radio waves to communicate with devices in close proximity over short distances. NFC has been used in contactless payment systems since 2002.
Contactless payment cards store information on a microchip rather than on a magnetic strip like traditional credit cards do. They are usually swiped through an electronic reader at checkout instead of inserted into a card reader. Contactless cards make it possible for customers to pay for goods and services with their card simply by tapping or waving it over the reader terminal during the transaction — no need for swiping or inserting the card into anything.
How do NFC mobile payments work?
The NFC Payment service will enable you to conduct card-based contactless payments by tapping your phone against a contactless payment terminal. This simple process can reduce the time and effort it takes to complete an operation at a point of sale, while also lowering costs and boosting productivity.
How do NFC payments work with contactless payment technology?
NFC is a technology that allows two devices to communicate when they are in close proximity. It is short for Near Field Communication, and it has been around since 2002. NFC technology is used in mobile phones, laptops, tablets and other electronic devices.
NFC is also similar to Bluetooth technology but differs in that NFC doesn’t require device discovery or manual syncing like Bluetooth. It also uses less power than Bluetooth. NFC can be used three different ways:
Peer-to-peer: Two NFC-enabled devices can establish a connection and share data.
Read/write: An active device, such as a phone, picks up data from a passive device which does not have the capability of reading information itself.
Card emulation: An NFC device can be used like a contactless credit card.
Accepting NFC payments is Easy and Convenient
The ability to pay without a wallet is one of the most powerful features of any payment device. The arrival of contactless payments has been a game changer in the world of credit and debit cards, but it’s not just about convenience.
Contactless payments are also an important step toward eliminating cash from payments. No matter what people think about cash, it’s still essential for some transactions – like buying groceries or paying a parking meter. At these moments, contactless QR code payment have significant advantages over cash: they’re faster and more secure.
In addition, they give retailers more data on their customers – something that could be valuable as they try to increase sales through targeted promotions and loyalty programs.