Near Field Communications Is About To Change The Way We Pay

Consumers, who have never heard of Near Field Communications or NFC by now, will find out very soon. It is an application available on a personal smart phone. The way customers pay for purchases on a daily basis is about to be flipped upside down. While there has been buzz about it for sometimes, this technology is being used as local merchants embrace the NFC technology. When shopping at the store now, customers either pay with cash, check, or credit. Most merchants prefer to take credit cards and cash. Bad checks have multiplied and caused a huge loss of money. This is encouraging customers to pay using electronic methods, which are guaranteed by the bank.

Forget swiping the credit card manually. With NFC technology, customers can now pay for their purchases and leave their purse or wallet at home. The beneficial thing about NFC is that the dangers of being robbed or losing the money is now gone. To pay with a mobile phone, one just puts the phone in front of the reader at the register. The reader will then deduct the money from the credit card attached to the account. The store must be equipped with a reader for this transaction to be successful. This technology does not work with the pay pass machines, or regular credit card technology. Many people are using NFC because it is safer.
Inside most mobile phones is a chip called the NFC chip. This allows two devises to communicate between each other using radio frequency. While this might sound like something out of a sci-fi movie, it is reality. Many stores across the country are now utilizing this service, because it is smart and innovative. Any mobile phone with this technology can pay for the purchase in as quickly as a tap in front of the scanner. The NFC chip is in communication with the compensation mainframe at the store. The credit card that is designated when setting up the account will be the one from which all purchases will be deducted.

NFC has actually been around for a while. With the evolution of mobile phones into being little computers, this technology has become an interest to customers and merchants. While merchants would like the transformation to using mobile phones to occur all at once, it is still going to take some time for public education and for perfecting. For some, being new and still unsure may make them hesitant to use this technology.

Some consumers may wonder why this is even necessary. It is just for the convenience aspect of the whole process for both consumer and merchant. The older generation may think it is crazy to make payments from a phone; however, the younger generation definitely will see the benefits. Critics might view it as a creation of new problems. When a new technology is created, there will always be bumps in the road. The convenience factor is the driving force behind NFC’s popularity.

Security is the old drawback for some people. Those people who will not give out any information to anyone may find it intimidating to store private information on a mobile phone. There will definitely need to be new security measures taken to make sure consumer information is safe. The first step is to make sure that the smartphone is protected before inputting any private data.

While we are just now beginning to understand how Near Field Communications actually works, it is something that will continue to be developed. In the near future, nearly 50% of the houses in the US are predicted to be actively using this technology every single day.

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