In today’s world of tablets and smartphones, everyone in some sense is looking for ways to stay connected to the next best thing. Since the foundation of any business is grounded in the need to streamline the customer experience, many have recognized the value in the growing tech developments and seek improvements that will modernize their consumer interactions.
One of the biggest enhancements that is making waves in the world of POS solutions is a form of mobile payment known as NFC or Near Field Communication. Near field communication is a new, convenient way or patrons to digitally process transactions by using stored banking information on a mobile device. All of which can be done by using a single app!
In short, NFC is here to simplify your shopping experience by getting you up to the register and out the door as quickly as possible to enjoy that cup of coffee or that new sweater you love.
So what is the hype and how does it work?
Quick and Easy Payments – Save Your Time and Keep It Simple
Imagine the coffee shop on your morning commute. You stop in to grab that much needed morning caffeine and chocolate muffin. You, and the person alongside you at the next register, finish the order at the same time and proceed to pay. While you rummage through your pockets only to find you don’t have the cash; you’re now stuck having use your debit card, swipe it and enter the pin. This doesn’t sit too well for the people behind you having to wait. As you look up, you notice the person who was next to you has already finished the payment and is now walking out with his purchase; but how did he do that so fast? While you held up the line with the check card payment, the other person only had to wave their phone in front of the payment pad and was out the door. That’s near field communication!
What Happens During?
Short range wireless technology; the primary reasons for near field communication are convince, consistency and ease. The technology used in NFC is a variant of radio frequency identification or RFID. Within an NFC transaction, information that has been stored by the consumer on their device corresponding with their banking information is transmitted from phone to POS by tapping the phone on a designated payment pad.
Your Phone – The New Wallet.
Several companies have been taken by this emerging form of payment and have even developed their own sources to maintain customer payment information for near field communication:
- Apple Pay – Apple has estimated that by the end of 2013, 300 million of its consumers would have NFC enabled devices and by 2014, over 220,000 merchants will have NCF technology present to accept Apple Pay. Apple, one of the largest tech companies in the world, has always been on the forefront of innovation. They have paved the way in graphic design, dominated the music industry with the iPod and now, have set their sights to conquer the world of payment solutions with their latest project, Apple Pay. Released in October of 2014, Apple Pay was designed for the consumer on-the-go. Its simple design and one-touch app allows a person, at any tech level, to use it. Within the Apply Pay application, the company employed an exciting new Touch ID feature. The Touch ID works when a person with Apple Pay enters a retailers NFC range. During the transaction process, the customer will tap the screen on their personal device, instead of a retailer’s payment pad, to authorize payment. This is an exciting venture that Apple is taking on; so much so many big named financial institutions such as VISA, American Express and MasterCard all back Apple Pay.
- Google Wallet – In 2011 Google, primarily known for being the largest search engine decided to expand its portfolio and soon found itself in the realm of the POS industry with its application, Google Wallet. Similar to Apple Pay, the Google Wallet application offers customers the flexibility and mobility of NFC payments. Google Wallet allows anyone to create an account and store banking information and retail loyalty points in its system for ease of use at the register. No more carrying around cards and cash in a traditional wallet; the Google Wallet can replace all of that with you mobile device. Once payment info is stored in the Google Wallet, a customer can make NFC payments at the register, purchases online or transfer funds to others who have Google Wallet.
Technology is ever increasing and exceeding expectations in the world of business. NFC is changing the way payments are made by providing more flexibility for the customer and simple way to pay. Want to find out more about the way NFC and other technologies are changing the world of POS? Contact one of our specialists today.