Contactless Payments – The Present or the Future?

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Contactless payments had originally been in Austria in 2013, with subsequent passage through the large Austrian banks, debit cards embedded with NFC technology. Large retailers have also rolled-out NFC-enabled terminals.

The Latest Developments

In 2016, we can expect that the use of contactless payments with mobile phones equipped with NFC in store payment options offered for mass adoption. And this will mean that the strategy to meet the financial norms, institutions, merchants, consumers, diverse, and technology-service provider.

Expect more than 650 million NFC-enabled smartphones that go contactless in-store-payments, it can be expected that the change occurred with the niche-making in this or the next year alone.

The advantages perceived by sellers.

Contactless transactions have great potential for greater security, if the money can be used through SIM-based tokenization is the ability. On tokenization-complex creates a unique code that is transmitted from the device to the dealer NFC-compatible machines.

The map information is stored, is stored with the issuing networks or even in the cloud. Since this marker is enabled, the marker is a crook who may intercept the transaction access to single-player, but can’t get her hands on the cards.

With fingerprint, retinal scan, or also a sensor heart rate Polar this form of payment makes it more safe. It is also biometric authentication uses a reliable security system provides compared to each map or wipe PIN.
It can be expected that NFC-smartphone transactions over time to steadily grow as more and more banks and traders to make such transactions. Contactless mobile payments will be possible basically along with another payment.

The future of contactless payments

Deloitte predicts that by the end of 2015, five percent of the base of 600-650 million near-field communication (NFC ) equipped phones are used to make at least once a month contactless in-store payments at retail. This compares with a monthly consumption of less than 0.5 percent of the 450-500 million NFC-enabled mobile phone owners from mid-2014. Contactless mobile payments are not mainstream before the end of 2015, but the niche hypothesis, a significant development is close to zero in previous years.

According to Deloitte, a number of NFC-enabled devices for in-store payments will grow, people will soon be familiar with the process. To do with mobile phones, payments that have flooded the market and soon trends. The combination of contactless payment methods using mobile balance will definitely affect the financial operations such as check, transfer of funds, online transactions.

This year a turning point for NFC, the provider will start the phones at the store payments and satisfy a number of requirements and security measures for mass adoption, primarily financial institutions, consumers, technology and the like.

The benefits in promotion of contactless payments

– With the advantage of contactless mobile-security transactions with its SIM-bit tokenization-the ability
Card saved information when issuing networks or the cloud so the limitations of the markers after a period of use.
NFC phones will be equipped to increase and manage high-value transactions and has no friction points, as it requires only one card, or a compatible reader device.
To limit costs, may be restricted only on the basis of credit or debit cards, but contactless cards payment threshold before additional confirmation is sought.
The adoption of NFC payment requires the right point-of-sale (POS) terminals, which are fully compatible and fast enough
The introduction of NFC mobile payments are driven mainly because of financial constraints for businesses. For consumers, the therapy, the reasons lie in the behavior. But to encourage the use of contactless mode, the entire payment process should be based lighter, slimmer or incentive in relation to discounts or coupons. Smartphone users, a built-in credit card information associated with your phone, you can submit the fingerprint to unlock the phone or authenticate a purchase.

It can be expected that in the near future people will have a choice, and 30 million people, some will decide to pay on your than contactless cards. The smartphone can also be restricted to offer a higher payment, such as contactless card.

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