Technological advancements have undoubtedly made it easier for end users to get done with daily activities.

Its new technology called Wireless Sensor Network system that utilizes mobile phones to carry out a wide range of entertainment and business activities on all the possible levels.

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Interestingly, it allows end users to conduct payments and transactions over mobile phones itself. They are blessed with this facility due to the tremendous growth of NFC, i.e. Near Field Communication.

The market for smartphones that imbibe NFC is also growing rapidly.

What is NFC?

NFC is a wireless communication technology that enables end-users to exchange the data between different devices that are placed far away from each other, via RFID readers and beacons.

It allows them to carry out the transactions without much hassle as it is a little energy and a low-cost communication technology.

NFC concentrates on customized communication by enabling secured intricate data exchange between the two users in a less intrusive manner.

NFC also enables retailers to enhance the in-store experience to cope with immense competition.

Convenience and time are two factors that shape up customers’ preferences.

Customers either go to retail stores because they do not want to wait for their order to arrive at their homes, or they prefer online shopping as it is quite convenient.

Moreover, the main point is to make it incredibly easy for them to get done with the entire process of purchasing a product.

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NFC uses electromagnetic radiations to transmit information between two devices, i.e. beacons or RFID tags and helps users in carrying out a transaction without much hassle.

Few markets across Asia, Japan, and Europe have started using NFC for enhancing the payment experience. However, people are still supposed to embrace this technology by implementing it in a broad way.

Advantages of integrating NFC in mobile apps

  • Gives augmented shopping experience to customers. Zaptap effectively utilizes NFC technology by connecting customers to a webpage that is featuring product/service information
  • Improves customer service by taking away the hassles of paying at stores by creating efficient ways like. A simple NFC tap from a mobile phone can solve problems with a blink of an eye.
  • Added security to your wallet even if in case the smartphone gets stolen, the two-step authentication method prevent your money from getting fraud.
  • Improved convenience in case of faster payments as it really eases up the payment process for the customers.
  • Lowers down the operational cost as alternate payment processing system saves money on paper and human resourse deployment for the same.

Implementing NFC for payment system

It is estimated that NFC payment systems will witness an exponential development shortly.

In the retail sector, NFC brought a significant change since the time Google introduced NFC-oriented wallet payment systems that enable end users to carry out payments at local retail stores with a few clicks on their smartphones.

In 2012, the attached NFC devices into product tags and ensemble stores with mirrors that are digitally advanced to enhance customers’ experience.

This innovation enabled them to view how a particular dress is crafted when they try it out in front of a mirror

With the help of NFC, various payment solutions can be developed that will make the process of paying easier at each and every NFC point.

Recently, there are various retail stores, petrol pump stations, and restaurants that have started using the contactless payment system through smartphones.

NFC in mobile apps

With the immense growth of NFC infrastructure, the scope of mobile payment has increased at an exponential rate.

Moreover, these payment systems are based out of highly intuitive UI, and they provide end users with a highly satisfying experience.

The presence of other innovative elements and various business prototypes ensure that this type of payment system will grow.

Moreover, end users are simply supposed to install the concerned applications on their Android phones to be able to make contactless payments.

Various applications enable end users to make non-contact payments, for example, Boon.

Once you download this application, you need to register, and you will be able to carry out transactions efficiently in a short time span. It is highly dependent upon prepaid MasterCard.

Moreover, it also provides end users with a transparently clear outlook of all the transactions and payments.

Recently, Peerbits developed an Android app Flashtag which uses the Mobile NFC Technology. It allows its users to transfer and receive funds via Near Field Communication.

Moreover, the user can also scan the NFC tag to retrieve vital information. All these activities are made secure via PIN protection.

Utilizing NFC effectively

Plenty ofThis departmental store in the US utilized NFC to enable end users to be aware of more styles and colors that they offer. Moreover, it also allowed them to check whether products are available on online platforms or not.

Bon-Ton implemented this technology in over 30 stores.

With the implementation of NFC in few stores, Bon-Ton got positive feedback from customers and end users tended to enjoy the process of using NFC as they found it quite useful.

One more thing that captured people’s attention to a large extent is that it is also easy to use.

Security concerns

No matter what the mode of payment is, security will always remain a major concern for all its parties.

Especially, with the electronic payment methods there are always security concerns, and NFC is no exception. So, let’s see how serious are these concerns.

Eavesdropping

Eavesdropping is a phenomenon when someone “listens” to your transactions. Technically speaking it happens when someone intercepts and obtains the information.

However, this threat is minimal in NFC, since the devices must be placed closely to send the signals and these signals are difficult to intercept.

Secondly, in case of NFC based payments the data is encrypted and decrypted only with an authorized device.

Additionally, NFC chips aren’t always active. For example, when your phone is locked the NFC devices don’t send any data. They become active when you want them to be.

Data manipulation

This happens when someone attempts to corrupt or manipulate the NFC transmission data communication. However, this risk can be effectively mitigated by with the use of secure channels.

Device theft

Another key threat is of device theft. If someone steals your device then that person can make payments through NFC and no encryption would save you.

However, this threat can be taken care of by taking simple steps. One of the step is set-up a passcode.

Some devices have a feature like fingerprinting scan or lock which helps to eliminate the risk of NFC misuse.

Security measures

All the above-mentioned security concerns are closely observed and are dealt with the help of appropriate security measures.

These security measures are both inherent and made to provide that extra layer of protection.

Proximity

In Mobile NFC Technology the devices must be closed within 4 cm to communicate. Due to this proximity it becomes difficult for the attackers to execute their attacks.

HCE

HCA which is also known as host card emulation, emulates the physical card. It stores the secure account information on cloud instead of saving it on device itself. Android Pay uses HCE to complete secure mobile payment transactions.

Secure element

NFC usually works through a secure element which is in the form of a tamper-resistant chip having sensitive data in it.

However, in NFC mobile payments the secure element is stored within the device and it communicates with the NFC-enabled receiver to complete the transaction.

Conclusion

These examples show how important and valuable implementing NFC in each and every retail store will be.

The most popular application of NFC is that it simplifies the process of conducting payments or transactions.

With the help of NFC contactless payment systems, customers at retail stores are allowed to keep their card information secured on their phones and pay with a few clicks on their phones or close to the NFC reader.

In spite of such broad applications of NFC, the real world is adopting it at a moderate rate, however.

However, it is certainly going to achieve user acceptance at a more general level and a lot of big players in the retail sector are going to adopt this technology on a big scale.

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