nfc payments: how they work

NFC Payments: How they work

Near Field Communication has revolutionised the way payments can be made…

but how does it work, and what security measures are in place?

An Introduction to NFC payments:

> Near Field Communication (or NFC) payments present users with a chance to make cashless payments from associated credit and debit card accounts.

> The concept of doing so isn’t a million miles away from that of contactless payments, but using NFC, you can actually pay for items using your mobile phone.

So how does it work?

> To take it back a few steps, most modern smartphones can use NFC to communicate with other phones or digital devices when within a radius of around ten centimetres (almost similar to how bluetooth has been used in the past).

> This communication can be synced with credit cards, meaning it’s possible to pay for items simply by holding your phone near suitable terminals.

Paytag

> PayTag which has recently been launched by Barclaycard, is probably the most widely used system using NFC technology in the UK just now.

> A PayTag is basically a sticker that’s fitted onto the back of a mobile phone, which uses NFC to transmit information from Barclaycard credit card accounts to contactless payment terminals.

What are the benefits?

> Well, for one it’s a lot quicker and easier than fiddling about with cash or even a card – the transaction is literally over in seconds.

> Secondly, you don’t need to fiddle about with a PIN, or find yourself in a position where you’re stuck because you’ve forgotten about it.

But is that safe?

> Yes, it’s as safe as any other form of payment, and you’ve got the same 100% level of fraud protection as you’d get on any other card.

> If you lose your mobile, you just have to treat it like you would losing your wallet or your credit card – phone up and report it as missing as soon as possible.

So where can I use it?

> In more places than you think – huge High Street names like Boots, WH Smith and Tesco are using the service, and fast food outlets like McDonalds, Subway and Pret are also embracing it.

> In fact, by the end of the coming year there will be 150,000 contactless terminals across the country – you’ll even be able to use it on the London Underground.

Will NFC take over from traditional payments?

> Some people are certainly hoping so – it is pretty convenient after all.

> The future is obviously unwritten, but previous research has indicated that £3 billion worth of purchases will be make through mobiles by 2016 in Britain alone. Pretty exciting stuff!

Image: Vernieman