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Payment processing trends suggest that traditional methods could fade

February 8, 2012

Mobile payments and near field communications (NFC) technology are payment options that are predicted to make it into stores within the year.

Among new retail technology offerings that have emerged as ways to revolutionize the retail shopping experience, two contenders have risen to the forefront. Mobile payments and near field communications (NFC) technology are payment options that are predicted to make it into stores within the year.

Mobile payment offerings have already made their way into many stores. Square, a device that attaches to mobile phones and allows users to process credit cards on-the-go, has announced that they already have one million active accounts. GoPayment plans to launch services later this year in Canada.

NFC technology is also poised to enter the retail sales industry. Companies like Google and MasterCard have backed the technology, which could serve as a digital wallet for consumers. Instead of carrying credit, debit, loyalty and ID cards, NFC technology enables customers to link account information through smartphones and complete transactions by simply swiping the phone past the mobile credit card processing equipment.

For retailers, security and efficiency are the major selling points of the technology. NFC-enabled devices offer a combination of security measures – both signature and PIN authentication as well as hardware-based protection – which could help merchants meet PCI security compliance standards. 

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