NFC and mobile payment- A beginning of seamless online payment (Part 1)
Mobiles are transforming the business landscape in a big way as it has not only boosted the eCommerce business environment but has also made the payment process much easier and faster. The paper money was earlier replaced by “plastic money� in the form of credit cards and they are now being replaced with other means of mobile payment system for a seamless payment through mobile phones. With better hardware specifications and major changes in software, smart phones are equipped with wonderful features and functionalities to help you in the day to day life. Near field communication (NFC) is one such feature that has the potential to change online payment process to a great extent. Let us provide you a brief insight about this fast emerging technology. Near Field Communication and mobile payment systems- With this new technology, two different devices that are placed few centimeters apart from each other can easily exchange data between them. For facilitating this difficult task, both the devices should be equipped with an NFC chip. This technology is similar to the Bluetooth technology but it utilizes much less power compared to the Bluetooth technology. With constant improvement in this area, they are now increasingly used in online payment methods. Various retailers like Target, Macys, Walgreens and others are already using NFC based contactless pay terminals for ensuring an effective and trouble- free mobile payment. If you want to understand more about the working of NFC technology for mobile payment system, you need to take a look at the below mentioned scenario. Once, the NFC payment application is launched, the phone is tapped on the credit card terminal and a connection is established with the help of NFC. At this crucial point, user is prompted for a finger scan or a passcode to authorize his/her credit card transaction. Now, this transaction is further validated through a separate chip known as secure element (SE) which informs the NFC modem about the authorization process. Now, further the payment is processed in the same manner as in the case of traditional credit card swipe transaction. Security point of view in NFC based payment process With the increased instances of online theft and forgery, numerous people are hesistant
about using this new technology for making online payment. In order to remove all your concerns, it should be noted that NFC is totally secure and there are no reasons to be in panic mode. One of the most crucial aspect in this mobile payment system is the secure element that holds all the authorization power for making online payment. This secure element can't be tampered away easily by hackers as it is protected by a unique digital signature. Further, the architecture of this secure element is designed in such a way that it is beyond any hardware and software related attacks. It is time to invent new online payment methods for improving the product sales and customer engagement on your eCommerce store. By making online payment through mobile phones, you are now better prepared to improve your chances of business growth and expansion in the changing business scenario. Further, you can also take the help of various amazing eCommerce extensions from Knowband that can ensure a seamless online payment by your targeted customers.