Mobile Contactless Payment Technology – How It Works, and Pros & Cons
Introduction Contactless payment is not a new concept as it is already a popular payment method throughout much of the world. It is a payment method that uses mobile devices hence making the transactions a little easier and quicker. When paying using contactless payment, the buyer and the seller are not required to have any form of physical contact. It is powered by a technology known as near field communication (NFC), where NFC mobile payment apps use radio frequency identification called RFID. This technology uses a specific frequency to enable the smartphone or the card to send a signal to the payment reader when the payment is initiated. But how does the contactless payment technology work, and how is this a sound investment for the future? Let’s take a deeper dive into the mobile contactless payments.
How Contactless Mobile App Payment Works Using contactless mobile payment apps to take card payments is easy and straightforward. All that the customer needs to do is to hold his device close to the point of sale (POS) terminal, which is NFC-enabled. Approximately, the payment device should be held within two inches. Since the devices send the information and data using RFID technology, the transaction is initiated automatically. It only takes a few seconds to pass the data back and forth, which initiates the payment process. In order to authenticate the transaction, the technology prompts the consumer to enter the passcode or to scan their finger depending on the settings. Then, the technology allows the authorization of the transaction by using a separate chip known as “Secure Element� before passing the permission to the NFC Modem. In simple terms, this mobile app development service works in two ways. First, it uses a one-way communication where the NFC chip is read by a powered device such as a card reader or a travel card terminal. After reading the NFC-enabled credit card, the technology automatically subtracts the money from the card balance. Second, it uses two-way communication. This is a software solution that allows two devices, which are NFCenabled, to write to and read each other. For instance, users can transfer data through Apple or Samsung phones as far as the two phones are NFC-enabled.
Pros and Cons of Contactless Payment Mobile App Now that it is understood how the technology works, it’s important to understand both the benefits and the issues this technology brings to the modern marketplace. Let’s take a look at the benefits to see how why technology is thriving: • Offers Convenient Mobile Payments Consumers pay on their own without seeking the services of third parties. Therefore, since consumers pay on their own, the process is easy, convenient, and requires no additional on-hand assets, such as cash or a wallet. • Fast Mobile Payments The transaction and experience are friendly to the customers. Customers make use of their devices to authentic and complete the transaction making the process far more efficient and streamlined than the traditional payment process.
Cont… • Secure Mobile Payments Digital wallets are secure since they offer biometric authentication as an extra layer of authentication. Using mobile app development services, credit companies can replace the sensitive cardholder information with tokens, which fraudsters cannot intercept. Therefore, the payment method is very secure. Although this technology is super popular, there, of course, are going to be some issues. Here are cons of contactless mobile payment as the technology continues to grow: • Technological Limitations While this technology does not require a lot of hardware to work with, it requires NFC-enabled phones. Therefore, customers whose phones cannot receive NFC signals or those who don’t have smartphones cannot participate in contactless payment. • Lack of Consumer Technological Knowledge While the technology is easy to use, some less tech-savvy customers still struggle to use it. This lack of understanding can be mitigated, but there will still always be detractors who prefer non-digital means.
Conclusion Overall, contactless mobile app solutions have revolutionized the way businesses get paid and how customers interact with providers. The technology offers an enjoyable experience to customers as they can check and pay their purchase at ease, and business can streamline their operations by reducing the time needed to make the purchase and check someone out. When incorporating this technology, however, it is important to leverage custom software developers to ensure that the new payment solution is fully optimized and integrated with the business’s current software suite. When sourcing a developer, it is critical to find a provider with both the technical and industry expertise to ensure success. Chetu is a custom software provider with over twenty years of providing custom payment mobile app development services. Its experts have expertise in over 40 industries, and a can both build and integrate the latest contactless software solutions to meet any business’s needs.
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