Top 3 benefits of NFC payments technology
Worldpay Editorial Team
March 14, 2022
What is NFC (near field communication)?
NFC is the technology that allows consumers to make payments with mobile wallet apps in their smartphones, as well as NFC-enabled credit and debit cards. It allows two NFC-enabled devices to communicate when held in close proximity to each other – typically about four centimeters. NFC contactless payments technology makes payments possible when consumers “tap” their NFC-enabled smartphones or NFC-enabled cards on or near NFC payment acceptance devices.
Near field communication is helping mobile wallets change the face of retail. In the US, adoption of mobile wallets has been relatively slow. However, today, that’s changing.
eMarketer estimates that 48.2% of smartphone users will be using proximity mobile payments by 2025. Additionally, the 2021 FIS Global Payments Report estimates that by 2024, digital wallets payment volume will account for 40.5% of North American e-commerce payments. Furthermore, Visa reported its tap-to-pay transactions grew over 30% year-over-year from March 2020 to March 2021.
The benefits of NFC payments
1. Convenience and ease of use
Consumer expectations for convenience are always on the rise. In almost any situation consumers typically flock to the fastest, easiest and most convenient option. An enabled NFC POS reader makes payment transactions easy as consumers often only need to hold up their phones or their NFC cards to make a payment. Unlike EMV transactions, where consumers had to learn to dip and wait, NFC mobile payments are typically simple and intuitive.
What’s the one item that your customers consistently have on them at all times? Their smartphone, of course. No wonder mobile wallets using near field communication are rising in popularity. For those who still prefer cards, NFC-enabled cards provide the same functionality in a convenient and familiar package.
2. Improved operational efficiency
NFC allows for faster payment transactions, which cuts down on the amount of time customers have to wait in line as well as time spent at the register. NFC payments help speed up checkout lines, increasing customer satisfaction with your business.
NFC contactless payments also mean less time per transaction. That represents a critical operational efficiency for businesses that turn a high volume of transactions at checkout. Happier customers and more efficient operations are measured in the bottom lines of businesses everywhere.
And NFC technology is easy to implement. You’ll need NFC-enabled payment terminals like credit card terminals or integrated point of sale systems. Fortunately, most new payment acceptance equipment or those sold recently already contain near field communication payments technology. Setup is simple and quick.
Like anything regarding payments, you’ll want to work closely with your payment processor to make sure you’ve configured your equipment properly and your payment acceptance is set up to accept both contactless payments via cards and mobile wallets. When you work with a leading payment partner like Worldpay, that part is easy, too.
3. Enhanced security
If you’re wondering about the security of NFC payments technology, that’s understandable. Maintaining the trust of your customers depends on providing safe transmission for their payments and any data related to payment transactions.
The security of near field communication technology starts with “near” – NFC signals only transmit data centimeters from the NFC device or payment terminal. Unlike wireless internet technology, near field communication signals can’t be hacked from across town, across the street or even across the room.
Security protections afforded by smartphones make NFC contactless payments even more secure. In addition to the protections from tokenization of private and personally identifying data, smartphones add an additional layer of authentication such as passwords and biometric security. This additional security is layered on top of existing fraud filters and other security measures like EMV that help protect all electronic payment transactions.
Worldpay is a leader in helping businesses implement near field communication payments technology to safely and conveniently accept NFC contactless payments. Connect with one of our NFC payment experts to learn more about how we can help protect your business with secure transactions that minimize fraud and reduce risk.