Mobile payments are the latest craze currently sweeping fast-moving sectors, including retail, fast food and transportation. The technology strongly relies on Near-field Communication (NFC) to handle such transactions; and many businesses are in the process of adopting NFC-capable devices to accommodate the new payment option.
Analysts predict that wireless transactions are the future of payments. According to TrendForce, a Taiwan-based technology and research firm, mobile payment transactions could reach $620 billion by the end of the year.
In 2017, the firm speculates that total wireless payment volumes may hit a whopping $780 billion and $930 billion in 2018. Today we’ll tackle how NFC works and the significant role that Point-of-Sale (POS) systems play in supporting NFC payment transactions.
NFC and Wireless Payments
NFC works by allowing NFC-capable devices to communicate with each other in real-time, without the use of cables or ports.
An example of this action includes the transfer of data (such as links or photos) between two devices. In retail environments, NFC is known for supporting wireless or mobile payments (also known as contactless payments).
When initiating a wireless transaction during checkout, the customer opens a digital wallet (Android Pay, Apple Pay or Samsung Pay- just to name a few), which contains the customer’s credit or debit information, and moves the smartphone within a few inches from the NFC-capable terminal.
In addition to being extremely convenient, the nascent payment method is safer than carrying hard cash and physical cards around all day. Furthermore, customers will never need to expose their credit card details during checkout, since all of the information is securely stored in the digital wallet.
“Also, more merchants will adopt point-of-sale systems that can accept mobile payments, and incentives like promotions and loyalty programs will be integrated to attract new users”, said eMarketer analyst Bryan Yeager.
Creating a Complete Digital Experience
Investing in an NFC-capable terminal is an effective way to future proof one’s business. Offering Apple Pay NFC or Samsung Pay NFC options sends a clear message to people entering your establishment, signaling that you’re interested in catering to the personal payment preferences of your customers.
But in order to offer a seamless experience during checkout, you must also invest in a POS system that supports NFC features. Access to a POS platform enabled for NFC payments can be advantageous for businesses.
With focus on restaurants and small companies, implementing such systems could help employees process transactions quickly and more accurately. After completing the payment, the transaction is recorded automatically into the POS, where it can be added to a customer’s rewards program, or included in the monthly sales report. Employees could also forward a copy of the receipt to the customer digitally, via email.
How eHopper Can Help
An NFC-capable terminal is only useful if it is integrated with a POS system that can process wireless transactions.
The POS platform also features customer and employee management features, which can be beneficial for establishments that are looking for new ways to simplify or consolidate complex workflows.