NFC is the underpinning technology for services like Apple Pay and Google Pay. Cardholders enrolled in these services can use contactless payment platforms on their smartphones, watches, or other wearable devices for fast and easy transactions at point-of-sale (POS) terminals. All Biz Systems offers an NFC reader for businesses looking to jump on the mobile and contactless bandwagon.
NFC technology enables a variety of everyday activities beyond payments, too. It is used for e-ticketing, for instance. Users can tap a transit card or smart device to enter a subway turnstile or hop on a bus. New York City’s Metropolitan Transportation Authority (MTA) is currently rolling out OMNY, a contactless way to pay for public transit around town. If all goes to plan, the system will replace the MetroCard by 2023.
In the context of banking, cardless ATMs allow customers to withdraw money with a simple swipe, scan or tap. Instead of physically inserting a debit card into the machine, these ATMs let customers withdraw cash via smartphone app.
Some banks have proprietary apps for accessing cardless ATMs, while others work with third-party mobile wallets like Apple Pay. These apps generate verification codes (a QR code, for instance) or display a digital version of the user’s debit card. Users scan the code or tap the device near an indicated spot in the ATM booth, and voila—transaction complete.
Some ATMs also have NFC-enabled capabilities that let users tap their debit cards in an indicated area on the machine instead of manually typing in a personal identification number (PIN) on a keypad.
Both NFC-enabled and EMV debit cards contain chips, so a “chip card” can refer to either. Only NFC-enabled cards, however, will function for no-touch payments and cardless ATM transactions. Cardholders can easily tell if their card has NFC capabilities by checking for the contactless indicator, which looks like a Wi-Fi symbol turned sideways.
Benefits and Considerations for Contactless Payments: