In our last post, we discussed emerging NFC technology and how it’s changing the payment industry in the form of the “mobile wallet.” Industry experts predict massive growth of mobile payment platforms like Apple Pay over the next few years. But as a business owner, you’re probably wondering what are the benefits of this form of payment versus a traditional credit card or even cash.
In today’s post, the second of our three-part FAQ, we’ll look at the value of NFC and mobile payment. Additionally we’ll explain other elements including its safety and security.
What are the benefits of NFC?
For consumers, NFC simplifies the payment process – no longer do they need to shuffle through their wallet to find cash or the right credit card. Instead, using applications like Apple Pay, they can store all of their payment cards on their cell phone. After they select which card they want to use, they just tap it on the merchant’s NFC-enabled device and the transaction is complete. Merchants benefit from this technology with quick and secure transactions.
How does security on mobile wallet programs work?
Different systems have different layers of security. For example, Apple Pay uses something called “tokenization,” in which credit card information is replaced with encrypted data. As a result, neither the cell phone nor Apple’s servers have card information. This means that merchants never actually collect customer credit card data, the information that hackers so desperately want. For Google Wallet, there are a number of security layers including a PIN requirement, which can become disabled after a set number of failed efforts to access it.
In our next post, we’ll focus on what you can do to get NFC-ready.