Near Field Communication Payment

Near field communication technology is one of the latest technologies in the mobile payment sector. NFC is basically a contactless technology that works with mere touch or at a distance of few centimeters. In the United States, NFC technology is being used for making payments via smartphones. Near field communication chips are embedded in many latest Smartphone. People use the NFC technology to communicate encrypted data to the near field reader, mostly when they are shopping in a retail outlet and making payments in the billing desk. Users of this technology can safeguard their credit card from flashing every time they use it.

The mechanism of payment system using NFC is simple. The user has to fill in the card details in their phone smart chip or the NFC chip. After the billing is done in the billing counter, the consumer simply has to wave or tap the phone in the NFC device. The payment is done. When you use near field communications payment option, most of the time you do not need to type in the authentication password. However, you may be required to enter the authentication PIN in some situations. This is nothing but for your own safety. The options from where the money gets debited are from your pre-paid card, credit card or directly from your bank account. Is not near field communication payment easy, simple and hassle free?

Though the NFC payment is easy and simple, there are also a lot of challenges, just like every new technology. Most of the payment systems are not ready to accept this mode as they are unsure of the consequences. Though near field communication payment option is facing so many challenges, there are many enthusiastic banks and mobile phone manufacturers who are ready to face the challenges. The main set back of the NFC payment technology is the lack of supporting infrastructure, complex hierarchy of the stakeholders, and also the standard that it has to set.

Near field communication payment vendors of Japan mostly use the mass-transit network. In most European countries, the contactless payments use the mobile phones. They mainly use this technology to pay on and off-street parking fees. By using the near field communication payment technology, the end users derive great benefits. The benefits may not be monetary, but the convenience is great. This is a very convenient method of payment because the payee is paying the fees in the comfort of the car. The benefit is monetary for the parking lot administrator because there’s no need to set any parking infrastructure.

Below are the few advantages of near field communication payment:

  1. The system is easy to use and people can use it if they have the NFC chip embedded in their Smartphone.
  2. NFC payment is cost effective and reliable.
  3. The NFC technology is gaining user and market acceptance nowadays.
  4. NFC payment technology is secure and flexible.
  5. NFC payment is a matured and state-of-the-art technology.
  6. Speedy payment process and it can be used in both large and small businesses.