2. Near Field Communication has
revolutionised the way payments can
be made…
but how does it work, and what
security measures are in place?
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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!