Streamline Your Payment Processing Using NFC

If you run a retail store or business, you should consider accepting payments via NFC-enabled smartphones. NFC – or Near-Field Communications – allows two local devices to share small amounts of data. For instance, a customer can swipe his or her smartphone next to a NFC receiver to instantly pay for goods.

I know what you’re thinking: isn’t this the same underlying principle of Bluetooth? Yes, Bluetooth allows for the data transmission between multiple devices, but it also suffers from several flaws. Bluetooth draws huge amounts of power, draining smartphones and connected devices in short periods of time. And trying to pair two devices using Bluetooth isn’t always an easy task (to say the least). This makes NFC the preferred technology for accepting local payments via a smartphone.

In order for a customer to pay using NFC, he or she must have a compatible smartphone as well as an NFC app. Google Wallet (for Android devices) and Apple Pay (for iPhones) are the two most popular and widely used NFC payment systems. The customer downloads the app to their smartphone and then submits a valid credit card or debit card number. When the customer is ready to make a purchase, he or she simply swipes the smartphone next to the store’s NFC reader.

There are several reasons why retailers should accept NFC payments, one of which is the time it saves at the checkout lanes. It’s easier, faster and more convenient for a shopper to scan their smartphone instead of paying with cash. And when shoppers have an easier time checking out, they’ll feel more inclined to return in the future. NFC readers can also be used as marketing tools, displaying sales and promotions to shoppers during checkout.

“The critical thing to make mobile wallets effective is that both the merchants and the consumer get something out of the deal above and beyond just a replacement for a card being swiped,” said Peter Olynick of the Carlisle & Gallagher Consulting Group. “The big thing Apple is marketing to date is enhanced security with Apple Pay, but I don’t know if that’s sustainable to keep people coming back again and again.”

NFC is currently used in thousands of retailers throughout the country, including Winn-Dixie, BiLo Holding, Albertson’s, Jewel-Osco, Star markets, United Food Stores, Associated Food Stores, Wegmans, and McDonalds just to name a few. Some banks have even jumped on board the NFC bandwagon, with SunTrust and Regions Bank now supporting NFC transactions.