For many years, credit and debit card payments were viewed with caution resulting from concerns scammers would steal information.
Near field communication (NFC) technology has modified the sport. NFC works with chip-enhanced bank cards and mobile devices, adding convenience and security for greater than half of Americans using contactless payments already.
Taken with using NFC and contactless payments? Here’s the right way to determine in the event that they’re right for your corporation, and the right way to make it occur.
What’s an NFC payment?
NFC (near-field communication) is a wireless communication protocol that allows two devices to speak via a secure low-speed connection. It enables contactless payment processing via payment terminals generally known as NFC-enabled readers.
NFC mobile technology powers two different payment methods:
- Credit and debit cards. Modern versions of credit and debit cards come embedded with a radio frequency identification (RFID) chip that uses NFC to speak with payment terminals.
- Mobile phones, tablets, and smartwatches. Mobile wallet apps, which operate via software on a user’s smartphone, smartwatch, or tablet, use the mobile device’s built-in NFC radio to speak with NFC payment devices. As such, mobile wallet apps may be used the identical way credit and debit cards are utilized in tap to pay transactions.
💡 Shopify POS hardware lets customers tap to pay on the counter, on the sales floor, and on the go.
How do contactless payments work?
NFC mobile payments work by sending encrypted transmissions using near-field communication, a secure, low-speed radio standard.
NFC chips may be present in smartphones, smartwatches, tablets, and even laptops. These NFC devices run mobile wallet apps like Apple Pay, Google Pay, and Samsung Pay. When a customer uses the device to pay for something, their bank card or checking account gets charged.
On the seller’s side of the transaction, point-of-sale (POS) payment terminals double as bank card readers. POS systems confer with NFC devices like they do with chip cards.
With NFC devices, you’ll be able to’t make payments unless you authorize them together with your fingerprint, face ID, or passcode.
The best way to accept NFC and contactless payments
- Arrange Shopify Payments
- Get the suitable hardware
- Select your payment options
- Tell your customers
1. Arrange Shopify Payments
Start by activating Shopify Payments in your store. It’s the simplest solution to accept NFC mobile payments through bank cards, Apple Pay, or Google Pay.
2. Get the suitable hardware
To just accept contactless payments, you’ll need the suitable point-of-sale (POS) hardware. Listed here are three options:
- Shopify Retail Counter Kit: Includes all needed hardware for a Shopify POS setup, compatible with contactless payments. This hardware bundle is for brands that need a stationary checkout counter of their retail store. With it, you’ll be able to accept all payment types including contactless, NFC.
- Shopify POS Go: Shopify POS Go is an all-in-one mobile device for simple, on-the-floor selling. It combines the Shopify POS system with a built-in barcode scanner and card reader. This permits store associates to serve customers and accept card and contactless payments anywhere in a store’s showroom.
- Tap to Pay on iPhone: This app is for brands that want to just accept payments on-the-go (like at farmer’s markets or events) without having to purchase hardware. Just download the Shopify POS app in your iPhone to start out accepting contactless payments.
💡 Find out how selling at in-person events with Shopify POS helped Daniel Vu take his ceramics business to latest levels.
3. Select your payment options
Go to your Shopify admin dashboard and check the choices for Apple Pay, Google Pay, and Shop Pay.
4. Tell your customers
Be certain that customers know that you simply accept contactless payment methods. Use signage at your physical location or suggest it at checkout.
Benefits of NFC and contactless payments
The contactless payment market is booming. Juniper Research predicts that global contactless payment transactions will exceed $10 trillion by 2027.
Here’s what’s driving this payment trend.
Convenience
In a 2021 report from American Express, consumers were asked why they like contactless payments. Some 73% cited convenience as the highest reason.
NFC mobile payments allow customers to go away their wallets at home. To make a payment, they tap their phone at a point-of-sale terminal.
Immediate processing
In keeping with the identical Amex report, 54% of respondents preferred contactless since it’s faster transaction speeds. Mobile payment works immediately with NFC. A customer just must unlock their phone with a fingerprint, face scan, or passcode to pay for something.
Security
A mobile payment with NFC uses end-to-end encryption. It is also safer than magnetic stripe payments because users must unlock their devices and provides permission before making a payment. This helps reduce chargeback complaints and provides a greater customer experience.
Disadvantages of NFC and contactless payments
It requires special equipment
Merchants must spend money on special payment terminals equipped with the suitable sort of NFC radios to just accept NFC payments. Along with paying for the equipment, the merchant may also pay an electrician to put in these terminals of their stores.
Transaction limits
Mobile wallet apps place transaction limits on their users, which may limit cart sizes and buy amounts. Sometimes these transaction limits fall well below the boundaries placed on a traditional bank card.
It’s only as secure because the user’s device
If a customer loses their cell phone, or it falls into the hands of somebody who knows their passcode, that other person could unlock the phone and make purchases via the user’s mobile wallet account.
To stop this kind of fraud, individuals should secure their internet-connected devices with fingerprints or Face ID, along with a password or passcode.
Accept NFC payments for your corporation
Customers love the convenience of mobile payment apps. Business owners are spotting this trend and adjusting their operations to just accept NFC mobile payments.
By adapting to customer preferences, you offer convenience and security to your clients, who, in return, can offer loyalty and appreciation.
NFC and contactless payments FAQ
Does my phone support NFC payment?
Newest smartphones released in the previous couple of years support NFC. This includes Apple, Samsung, Google, and Huawei. For those who’re unsure whether or not your phone supports NFC payments, look up your phone model’s specifications on the manufacturer’s website.
Is it protected to pay with NFC?
Yes, NFC is some of the secure payment methods available to consumers. The devices use encrypted transmissions in each directions, so scammers cannot intercept financial data. Before you’ll be able to make NFC payments, it’s good to unlock your device with a passcode, fingerprint, or face scan.
Can I take NFC payments on my phone?
Yes, you’ll be able to take NFC payments in your phone with Shopify’s Tap to Pay on iPhone feature. Simply download the Shopify POS app and add products to the cart. Your phone will grow to be a payment terminal for in-person customers.
How do I pay with NFC?
If you would like to pay with NFC, add a mobile wallet app to your phone. You’ll be able to connect your mobile wallet to your bank card, debit card, or checking account. Popular mobile wallets include Google Pay, Apple Pay, Samsung Pay, Venmo, and PayPal. When you’re arrange, you should use NFC at any retailer with an NFC terminal.
