Reasons Why Near-Field Communication (NFC) Is Getting More Popular Nowadays

NFC Payments, also known as Contactless Payments, have gained enormous popularity worldwide. According to Statista, the global NFC market size in 2014 was valued at $3 billion and is expected to grow to around $50 billion in 2024. NFC is witnessing new technologies to make the payment experience better and more convenient. But Why NFC is increasing rapidly? And Which aspects made NFC so famous? Well, To know all of these answers, take a look below,

What is Near-Field Communication (NFC)?

Near-field communication (NFC) is a technology that enables users to securely transfer and receive information through their mobile devices over a short range. It is a wireless technology that allows two-way communication. NFC is a technology that serves contactless payments, and it powers mobile wallet payments such as Samsung Pay, Apple Pay, Google Pay, and tap-to-pay-like payment cards. But how do NFC Payments work? Checkout Below,

How do NFC Payments Work?

NFC Payments uses an NFC enabled reader. The mobile devices and payment readers containing chips facilitated the secure data exchange. The transaction is initiated when the User chooses a card to pay, and the User places the phone close to the payment reader. A chip called a secure element then authorizes and validates the transaction. After completing the transaction by the above technique, The payment is processed like a regular card transaction. 

Find out the main reason why NFC is getting popular day by day,

Reasons Why NFC is Getting Popular

1. Cashless Payments

The convenience of cashless payment is one of this technology's most essential and most significant benefits. NFC makes it very easy for users to make payments via their smartphones and tablets using a mobile wallet. It resulted in a wonderful user experience and incredible growth for service providers. It will also enhance productivity and efficiency. 

2. Contactless Solutions

As we went through a deadly pandemic, contactless solutions are one of the best reasons for today's situation. The Pandemic boosts the online transaction ratio as people prefer this secure contactless payment option. NFC supports the widespread application of contactless payment solutions. Other leading factors: NFC technology promotes security while performing your transaction. It will foster convenience and save time as well.  

3. Secure Transactions

NFC payments secure transactions as the chip technology protects you against fraudulent purchases through end-to-end encryption and dynamic data technology. As a result, the transaction can only be completed after validation. In addition, a unique digital signature is assigned to every transaction instead of exchanging debit/credit card details between the device and the reader.

4. Efficiency & Productivity

NFC technology improves the efficiency and productivity of the app as it helps generate more revenue and attract more users. NFC payment technology is used for inter-communication as well. Another important aspect is the tap-to-pay technology. Just a few taps on the screen and the transaction is done. Faster and less workforce requirement increases productivity.

5. Stored Information

Users don't need to carry their credit/debit cards with them for making payments, and They can save their card details on their phones and place the phones near the card reader for contactless payments. It prevents the users from losing their essential cards and saves time. 

Bottom Line

Near-field communication (NFC) is already replacing the traditional payment system. NFC faces rapid growth as the Pandemic hits the world economy, and people prefer easy, faster, and contactless payment methods. NFC-enabled mobile phones have become standard, and their applications are a part of our daily lives.