The payments industry is transforming into a much more digital and convenient space. With the advent of technology, it has become easier to pay for goods and services using mobile wallets, cards and other digital payment methods.
For our dream to build a digital world to come alive, wireless technologies have a critical role to play. While the first step towards that dream is availability, “speed & convenience” at which you can access your world will constitute the next level of innovation. Applications and devices are now interconnected and allows for accessibility and portability, but the real differentiation will be to provide what you require at your fingertip without blinking an eyelid. Let us look at the key factors driving this digital adoption in the payments industry:
The payments industry is one of the largest in the world with a collective annual turnover close to $1 Trillion. Over the next few years, it is expected to grow even further and become a major part of our everyday lives.
The biggest drivers for this growth are:
Growing smartphone penetration and internet connectivity.
Increasing affordability of smartphones and data plans.
Increase in awareness about digital payments and their benefits.
The increasing popularity of mobile wallets due to ease of use, convenience, low transaction fees and security.
Customer preference for mobile apps over traditional card swipes at POS terminals.
With these factors contributing towards growth, it’s no wonder that NFC based payment systems are gaining popularity fast!
The world is moving to a digital economy.
The first step towards a cashless economy is to make payments easier and more convenient. With the rise of smartphones, mobile wallets and other digital payment solutions, it has become easier to pay digitally with Qr code payments.
With the increased usage of mobile phones and smart devices, NFC (Near Field Communication) technology is becoming popular in India. NFC is a short range wireless communication technology that enables users to exchange data between two devices by tapping them together or bringing them into close proximity.
NFC payments are extremely convenient for consumers as they do not require any additional steps or authentication for making payments. The contactless nature of NFC technology eliminates the need for swiping cards or entering PINs at point-of-sale terminals. This allows consumers to make quick purchases with minimal hassle from their mobile devices – all they have to do is tap their phone against an NFC reader at the point-of-sale terminal and complete the transaction using their preferred payment method (such as credit card).
Additional benefits include eliminating paperwork and reducing fraud since there is no signature required when using an NFC enabled mobile device for payment purposes.
National Common Mobility Card
The Reserve Bank of India (the Bank) took the first step towards encouraging reforms in the payments and settlements system in the country to promote contactless payment by waving off the need for two factor authentication for transactions less than Rs 2,000 through cards. Multiple players have introduced their version of contactless payments but the most promising would be the one where the customer can make a payment through a simple gesture within a fraction of second (Quick Tap).
In this article we will discuss various modes of NFC payment in India, major players in this space and their offerings. We will also talk about some key trends that can help you understand why NFC based payments are set to become mainstream soon.