You may have seen two local devices sharing small bits of data near the point of sale terminals in shopping malls or cash counters in retail outlets.
Such devices work on smart cards, print advertising, and commuter card technologies but recently it has been placed on Android, Windows Phone and iOS.
This enhancement has made Near Field Communication (NFC) more appropriate and compatible in case of mobile-based payments.
Functionality Behind NFC Apps
On a smartphone when NFC app installation is done, the phone will instantly connect with the credit card terminal as soon as the phone is touched/ tapped against it.
To approve the transaction simply scan your finger or enter a passcode
This transaction is valid through a small separate chip called Secure Element, which sends control back to the NFC modem
Ultimately, the payment is done in the same way as traditional card swipe transaction
Automation of a lot of phone functions, such as passing contacts, configuring wireless settings and launching the application is also a big move that is known to the skilled user. At the top step, they know how to use NFC tags.
NFCA or Near Field Communication Apps – today, NFC Payment Apps are widely used in the retail industry.
NFC is a method of contactless communication of data between devices in close proximity, and this technique has already been in use in Europe, Asia, and is now gaining popularity in North America.
NFC technology provides a secure architecture and compatible framework for application dealers to use technology for mobile payment capabilities (like peer-to-peer money exchange).
How Does NFC Work?
NFC is made upon RFID systems by allowing two-way communication between endpoints, where the first systems, such as touchless smart cards were only one-sided.
NFC work has been used in devices running Android 4.0 Ice Cream Sandwich, named “Android Beam”, which was first introduced in Google Nexus.
In operation with NFC mobile payments, Android Beam uses NFC to enable Bluetooth on both devices, connects them immediately and disable Bluetooth automatically on both devices after the desired transaction is completed.
It has also been used in Samsung Galaxy devices with the feature called S-Beam.
Best NFC Payment Apps In The Market Today
At present, there are many NFC compatible smartphones such as Google’s Nexus Series, Samsung’s Galaxy Series, and the iPhone. Different companies are currently onboard to take advantage of this technology:
1. Android Pay
One of the most popular digital wallets is Android Pay. Anyone who has an app on Android smartphones can pay with a simple tap against sale terminal that has near-field communication or NFC.
In the last two years, list of countries to support Android Pay has increased
There are many businesspersons and companies like PayPal that have worked with Android Pay to use touch and pay app functionality. In fact, many retailers are now providing customized tap and payment apps for their customers.
2. Apple Pay
Apple Pay is again a very much popular NFC payment option from with Apple ecosystem that allows iOS device owners to make purchases with prime retailers or via in-app purchases.
It uses the same standard of contactless technology that works for short distances.
If you switch on the iOS device in a store, and it can detect the NFC field, it will offer your default card for payment after verification.
Users need to authenticate the purchase using Touch ID or Passcode to send payment information.
Without this authentication, No payment information can be shared. This service is also available for Apple Watch, where users can double-click the side button on the lock device to activate the default card for a purchase.
Once you’ve certified payment, your device account number and a transaction-specific dynamic security code are provided to the Secure Element. This information is necessary with additional details to complete the transaction at the retailer’s point of sale terminal.
3. Samsung Pay
Opposing Android pay and Apple Pay is Samsung Pay – which uses near-field communication technology to process payments in the form of tap-to-pay terminals.
Nevertheless, Samsung Pay also provides compatibility with all other magnetic stripe terminals.
This service allows you to pay easily for goods and services by swiping your Samsung device near the cash register instead of swiping your credit card or supplying your payment information.
The payment platform works with the Samsung Galaxy range of devices – so it will work with all relevant phones and tablets and sometimes Gear S3 Smartwatch on the basis of the field.
Like Apple Pay, Samsung Pay also uses biometric authentication and approval to process a contactless payment.
PayPal makes online payments easy as national payments worldwide. With its clear terms and conditions, it is convenient to send and receive online international payments.
Both sender and receiver need to have PayPal accounts if they want to do transactions among themselves.
Installing an application on a mobile phone makes it easy to do so. You must be a trusted user and it is not necessary to have a balance in your account to transfer funds.
5. LifeLock Wallet
After getting the previous Lemon Wallet, Lifelock is an identity theft protection service, which launched its own digital platform called Lifelock Wallet.
It allows saving debit, credit, insurance, and other such reliable card details and allows device safety at the same time. An identity restoration specialist will come to give you relief in a rare case of identity theft.
6. Square Wallet
Square works like the lemon wallet and works on both iOS and Android platforms.
The Square Wallet app works surprisingly fast as it’s capable of being connected to a credit card and being location-based. The store with which you try to make a payment knows that you have initiated a transaction with your linked Square account.
A hands-free checkout option that comes with the app allows you to mark your chosen dealer as one of the favorites. By using the Square App, you become eligible for discounts from the stores on your next trip.
These are the selected few NFC Payment Apps being used by people around the world for their daily payments. As demand grows, more and more customers have started to feel the need of making NFC-based payments.
7. Visa PayWave
When it comes to contactless payment techniques, Visa PayWave is again a popular option. It allows users to pay by simply waving their card over a secure reader.
There is no need to insert or swipe your card. Payment is then approved, processed and billed in a secure manner.
You need to make sure that your bank participates for the mobile service in Visa PayWave and you have the relevant NFC payment app on your phone.
Rather than tapping your credit card on the NFC machine at the checkout counter, all you have to do is wave your smartphone or tap it on the machine to make your payments.
This will be able to identify the information about the credit card associated with your Google Account.
Link your debit or credit card to your Google account and you can leave your wallet at home – but currently, it only works with phones and credit cards from the US and UK.
At the moment, it supports 20+ merchants on the ground and online, which promises more businessmen to come.
8. MasterCard PayPass
A contactless payment service (supported by Google Wallet too). MasterCard PayPal is a “contactless” NFC payment app, in which there are features similar to American Express’s Expressway and Visa’s PayWave.
PayPal is based on the ISO/IEC 14443 standard, which offers cardholders a simpler way to pay by tapping a payment card or other payment devices, such as key fob or phone, on a point-of-sale terminal reader rather than swiping or inserting a card.
Right now, PayPass can be used on transactions up to and including £20 GBP, $50 USD, $100 CAD or AUD.
The demand for NFC payment apps is increasing day by day as more buyers and traders are getting profit from them.
With the help of technological advancements and with a deep interest in the NFC mobile payment market, the development of NFC payment apps is becoming a popular choice for mobile payments.