Future in Payments: NFC Will Ignite Adoption of Mobile Payments
The payment industry - and now consumers - are buzzing around the acronym NFC, Near Field Communication, especially after Apple Inc. gave their seal of approval during their announcement introducing Apple PayTM.
With iPhone 6 sales of more than 10 million within the first three days after the launch, an all-time record was set for Apple, according to eWeek.com. NFC was not something discussed at water coolers in previous years, but thanks to one of the most popular brands, it is now. Sometimes referred to as contactless payments, this technology allows a user to wave the smartphone over a NFC compatible device at point of sale to send information without needing to touch the devices together.
Although this technology is making its way into our payments landscape, it has been around for some time. TSYS Merchant Solutions has offered education, support and products around payment technologies for over 30 years to thousands of businesses nationwide. In fact, manufacturers included NFC chips in about 300 million smartphones last year, equivalent to around one third of all smartphones shipped.
Why should merchants consider accepting NFC point-of-sale devices? According to the NFC Forum, these are the benefits:
- Intuitive: NFC interactions require no more than a simple touch.
- Versatile: NFC is ideally suited to the broadest range of industries, environments, and uses.
- Open and standards-based: The underlying layers of NFC technology follow universally implemented ISO, ECMA, and ETSI standards.
- Technology-enabling: NFC facilitates fast and simple setup of wireless technologies, such as Bluetooth.
- Inherently secure: NFC transmissions are short range - from a touch to a few centimeters.
- Interoperable: NFC works with existing contactless card technologies.
- Security-ready: NFC has built-in capabilities to support secure applications.
NFC is expected to become as commonplace as wifi and GPS. According to market research firm IHS iSuppli, the number of NFC-enabled phones this year is expected to keep growing - reaching around 550 million devices.
Want to know more about NFC and mobile payments? Check out these videos:
Learn more about how to accept Apple Pay.