NFC payments, utilizing near-field communication technology, enable contactless payments by wirelessly transferring data between devices. This technology allows for seamless transactions through mobile payment options such as Apple Pay, Samsung Pay, Google Pay, as well as contactless cards.
Mobile devices equipped with NFC technology serve as a platform for users to make payments through the mentioned options. However, it’s important to note that not all phones, especially older models, come with NFC capabilities.
During NFC payments, a mobile wallet or an enabled credit or debit card communicates with a payment terminal, securely transmitting encrypted payment information from the customer to the retailer.
With the increasing popularity of mobile wallets, NFC mobile payments have become more prevalent. Customers looking for added convenience and security can utilize Apple Pay and Google Pay on their mobile devices at retailers that support tap-to-pay functionality for both cards and mobile payments.
To cater to this trend, tap-to-pay cards are being issued in larger numbers as older cards expire. Banks are now sending replacement cards with this feature enabled by default. These cards are easily identifiable by the symbol resembling a sideways WiFi icon displayed on them.
When using NFC payments, the security of the cardholder’s information is a top priority. NFC technology employs encryption and tokenization to safeguard sensitive payment data during the transaction. This ensures that the cardholder’s financial details remain protected and inaccessible to unauthorized parties, providing peace of mind while making contactless payments.
Written by Andrii Vovk