NFC payments, or “near field communication” are what you might call Apple Pay, Android Pay, or a contactless mobile wallet. NFC contactless payments are convenient if you’re short on time and don’t like digging around in your wallet for exact change or to find your credit card. They’re also vital for businesses because today NFC is how customers want to pay.
In fact, there are more than 383 million people utilizing Apple Pay around the world. Starbucks developed its own way for customers to use their app to pay at the register as early as 2009. All you have to do is scan a QR code at the register, and your venti iced latte is paid for.
Today, the risk of not accepting NFC payments is losing out on any of those 24 million potential customers. Here’s how it works.
Just Tap and Go With NFC Contactless Payments
To make an NFC payment, all a customer has to do is open their mobile wallet or app and tap their phone to a terminal. NFC-enabled terminals only communicate with the phone and the information is encrypted. This makes it more secure than swiping a card. The reader only connects with one phone at a time, so a customer can’t accidentally pay for someone else’s purchase.
To accept payments, you need an NFC-enabled countertop terminal or mobile swiper and a credit card processor that can facilitate contactless payments. If you’re not sure if your current processor can support NFC mobile payments, or if they charge an extra fee for it, sit down and discuss it with your merchant services provider.
Go Beyond Cash Registers
Tapping your phone at the register goes beyond retail chains. Restaurants have begun adapting NFC contactless payments too. 72% of mobile payment users are Millennials or Gen X’ers, so if your business caters to these demographics, you should look into NFC payments.
Your payments rep can recommend a terminal or mobile solution for you if you’d like to begin accepting contactless payments.
NFC contactless payments are on the rise across industries since they’re such a convenient and secure way to pay. Providing your customers with a wide range of payment options is the foundation of a smooth checkout. Easy checkout is just one part of providing a great customer experience that they will want to come back to.
This type of payment is also one of the fastest ways for customers to pay. With just a tap of their phone, your customer completes their payment. And because it’s an in-person transaction, interchange rates are lower than they would be if you keyed in a card. You can offer your customers a convenient way to pay while saving money at the same time.
FAQs about NFC contactless payments
Q: What is NFC contactless payment?
NFC contactless payments are digital transactions that use near-field communication technology to facilitate payments through mobile devices like smartphones and tablets. Examples of NFC payments include Apple Pay and Android Pay.
Q: Who uses NFC contactless payments?
NFC contactless payments are popular among a broad demographic, with over 383 million people utilizing Apple Pay worldwide. As per Pew Charitable Trust, 72% of mobile payment users are Millennials or Gen X’ers.
Q: How does NFC contactless payment work?
To make an NFC payment, customers must open their mobile wallet or app and tap their phone to a terminal. The NFC-enabled terminal communicates with the phone, encrypting the transaction information for secure processing.
Q: Why are NFC contactless payments important for businesses?
Accepting NFC payments allows businesses to cater to a sizeable customer base that prefers this form of payment. Additionally, businesses that don’t accept this type of payment risk losing out on potential customers.
Q: In which industries are NFC contactless payments being utilized?
NFC payments are increasingly popular across industries, primarily in the retail and food service sectors. They offer a convenient, secure, and efficient payment method for customers.
Q: What are the advantages of adopting NFC contactless payments?
Security is a key advantage of NFC payments—the encrypted communication between a single phone and the terminal ensures safe transactions. Plus, transactions are swift, offering a smooth checkout experience to customers and saving businesses time.
Q: How can businesses start accepting NFC contactless payments?
To accept NFC payments, businesses require an NFC-enabled terminal or mobile swiper and a credit card processor adept at facilitating contactless payments. If unsure whether your current processor supports NFC payments, consult with your merchant services provider.
Q: Are NFC contactless payments cost-effective?
Yes, since NFC payments are in-person transactions, their interchange rates are often lower than keyed-in credit card transactions. This keeps the cost lower for businesses.
Q: Do all smartphones support NFC contactless payments?
Not all smartphones support NFC technology. It’s advisable for consumers to check their phone’s specifications or settings to see if it’s NFC-enabled.
Q: Are there any transaction limits for NFC contactless payments?
The transaction limit for NFC contactless payments may vary depending on the customer’s bank and the country’s regulations. It’s advisable to check with the respective bank for accurate information.
