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NFC transactions may change the payment industry in unexpected ways

December 21, 2012

Near Field Communication (NFC) technology has been around for quite some time and has allowed for payments involving touching a smartphone to a reader allow transactions to be completed from a handheld device.

Near Field Communication (NFC) technology has been around for quite some time and has allowed for payments involving touching a smartphone to a reader allow transactions to be completed from a handheld device. Computer World points out that NFC operates via a microchip that can transfer data, such as transactions or files, from one device to a terminal. The rise of mobile pay is diversifying payment options, and this touch-based technology has seen less focus in the past months. Applications such as Google Wallet, which rely on this device could be seeing a lack of projected success because the installation of the technology can be costly, which is deterring smaller retailers from moving forward.

Merchant services will be driven by customer demand, and as more consumers want mobile pay is apparent, many retailers will upgrade. The microchip technology could be better integrated with smartphone technology to expand its sensory range, eliminating data breaches. Security is a concern with mobile transactions, and developers must find ways to make existing technologies work together to streamline communications and enhance data security. Promoting customer convenience and greater merchant fraud prevention measures can help to boost confidence and interest in the payment method.

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