NFC stands for near-field communication, it allows two devices to share data.
You’ve likely used it already, even if you haven’t realized it. It’s embedded in computer cards, print ads, smart cards and it is featured in many Android phones, Windows phones and the new iPhone.
NFC works in two ways:
The first is two-way communication, where two devices can read and write each other – like transferring contacts or photos from one device to another. The second is one-way communication where a device can read and write to an NFC chip – similar to using an NFC enabled card to pay for something using an NFC terminal.
Sure there are other technologies, like Bluetooth, that can do things similar to NFC, but NFC uses less power and is better for your smartphone’s battery life. NFC is also less complicated to use than Bluetooth and doesn’t need to be paired with anything.
NFC is extremely secure. Intercepting payment information from an NFC device is very difficult because of how the process works. To use NFC for payments, the payment application is first launched on a phone that is then tapped on a terminal. The customer then enters a code or scans a fingerprint to approve the transaction. A secure element (SE) then authorizes the payment and sends the information to the NFC modem. The payment is then processed like a credit card swipe.
NFC is likely to continue to grow in popularity in the mobile payments space, to learn more about NFC payments and how you can prepare your business with National Transaction Corporation, visit www.nationaltransaction.com or give us a call at 1-888-996-2273