NFC Payments

“One day, we'll all be paying for things with our phones, and NFC is the ticket to that future.” 

Top 2 Reasons NFC is Crucial to Security in Payments

December 15, 2014

NFC Payments

“One day, we'll all be paying for things with our phones, and NFC is the ticket to that future.” - Sharon Profis

One of the most exciting developments to the payments ecosystem is the introduction of Near Field Communication (NFC), which enables smartphones to quickly and securely communicate payment information with other phones and point-of-sale devices. This is the new reality for many large merchants, but for many small merchants, NFC has become a hot topic thanks to the excitement around Apple Pay. Learn more about how to accept Apple Pay.

What you might not know is that one in three phones are NFC enabled and there are projected to be 43 million contactless point-of-sale readers in the US, according to NFC World.

So, the big question is what can it do for you – the merchant? We’ve narrowed down the benefits to the following primary points for overall adoption:


First of all, most consumers very rarely leave the house without their smartphone. With this payment system, everything needed to make a payment is with them at all times – no accidentally leaving the wallet in the house or car. Additionally, NFC readers reduces the time of each transaction, cutting down on the time a customer has to wait in line and the time the customer spends at the register. For merchants with a small number of employees, this can be the difference between getting through a line quickly versus watching disgruntled customers leave before making a purchase to avoid long waits.


A September 2014 survey of consumers reported on the Green Sheet, 46 percent of consumers who do not use their smartphones to make payments cite security concerns as the deterrent. A consumer’s sensitive payment information is securely stored on a mobile phone with the assistance of smart chip technology. This safeguard is tamper-proof and protected by a unique digital signature. Apple Pay secures the process with a physical chip. Each time a transaction occurs, a random, one-time use code instead of transmitting the user's debit or credit card number.For those small merchants on the fence on whether to take that last step and offer NFC enabled payments, please consider this last fact: 2.8 billion NFC payment transactions worldwide are projected by 2017, according to Gartner. Watch for further insights into how NFC – and other payment security elements – will come into play in 2015.

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