NFC or Near Field Communication Payment is a contact less payment method. We can use a NFC enabled device to make payment to businesses in an easy and secure way. Furthermore, a NFC device could be smartphone, smart cards or wearable device. As soon as the customer brings a NFC enabled device in close proximity to payment terminal, it processes the payment.
Besides, NFC purchases to a limited value requires no PIN verification and signature. It also allows for faster processing and quicker transactions. However, higher value purchases require verification.
Smartphone is front runner in NFC payments. It allows customer to make contact less payment as well as get real time notification about payment details and account details. A smartphone provide customer the ability to make payment using NFC, complete the transaction using smartphone, and get notification through payment app. All these processes make huge convenience for customer without having to carry different card or making verification of transaction.
We use numerous digital payment systems. Some of these are Google Pay, Apple Pay and Samsung Pay. These payment systems also include a digital wallet.
While Google Pay can work on Android and iOS device, Apple Pay only works on iOS based Apple device. Samsung Pay works on Android based Samsung devices only.
How secure is NFC ?
One of a major objective for NFC payment is security. Lets understand what makes NFC secure. NFC payment uses two different methods for security.
First is encryption, payment systems uses data encryption. Here, the systems provider encrypts both customer and transaction data.
Second, a security measure – tokenization. Tokenization mixes bank detail with random string of characters to produce a token. This is used carry out the payment of that particular transaction. Even in case of a breach, leaked data can not be used in any meaningful form.
Conclusion
NFC allows a secure, encrypted, quick and contact less payment mechanism.
