Accepting NFC Payments and Apple Pay

According to technology expert opinions gathered by Pew Research, NFC-based payments will surpass and even replace the consumer’s need to pay for their goods and services with cash and credit cards. Based on this information, merchants should be aware that selection of mobile wallets as a payment method by consumers is a steadily growing trend rather than a passing phase.

What is NFC Technology?

NFC technology is the shortwave communication between two NFC-enabled devices within 3.9 in.(10cm) or less. Using this method, merchants can conduct wireless transactions using an NFC-enabled POS terminal that interacts with the customer’s NFC-enabled mobile device.

Accepting NFC Payments

To get started, merchants should contact their POS provider for assistance to see whether or not they need to update their POS hardware to make it compatible with NFC technology. Merchants that have a Genius™ Customer Engagement Platform™ integrated with their POS system already have NFC capability which will recognize Genius capable devices. Additionally, a merchant can activate an NFC-integrated loyalty program and an NFC-integrated mobile wallet, such as Apple Pay via the cloud.

Why Merchants Should Use NFC POS Systems

In a highly competitive market, it pays for a merchant to adjust to changing popular trends to meet their consumer’s demands. Many brick and mortar merchants have already integrated NFC technology with their POS terminal, and it is predicted that 25 percent more merchants will integrate their current POS system with NFC technology within the next 1-3 years.

Aside from this reason, 37 percent of consumers are using NFC-enabled devices to make a purchase. With the release of the iPhone® 6, the iPhone 6 Plus and the Apple Watch, the percentage of NFC technology being used by the average consumers is expected to increase considerably between now and 2017, representing trillions of dollars in potential profits for merchants who accept NFC-based payments.

Incentives For Merchants Accepting ApplePay NFC Payments

The advantage of merchants using NFC technology can be extended in other areas as well based on their service provider. When app-store providers started generating APIs, it opened the opportunity for app developers to interact with merchants, consumers, and transaction data via the POS system, which in turn provides seamless delivery of loyalty, related product selling, demand generation and a variety of other services app developers may want to offer. For example, merchants using NFC technology can personalize the way how consumers receive special offers, customized coupons and loyalty and points rewards. A mobile wallet that features an array of options for consumers immediately improves their shopping experience which motivates them to make repeat purchases. More importantly, accepting ApplePay NFC payments offers great incentives for merchants that they can take advantage of right away:

  1. It’s convenient and safe. Apple Pay is the most secure eWallet yet to be created. Consumers simply swipe their finger over their TouchID fingerprint scanner on their iMobile device which pays for their goods or services using a stored credit card attached to their existing account. It also generates a one-use security code that only authorizes a single transaction.
  2. Apple Pay maintains a leading presence in the market against competitors and does not require merchants to use a special card reader. Moreover, Apple Pay conveniently provides virtual currency platforms like PayPal and Bitcoin, without requiring the merchant or consumer to conduct currency conversions.

Research suggests that mobile wallets, such as NFC payment applications will replace current payment methods. Based on the many recent credit card breaches that have happened to consumers belonging to giant retailers, it’s especially ideal for merchants to present a payment solution that finally shields consumer’s accounts from fraud and identity theft. Merchants looking to start accepting NFC or Apple Pay should contact a recommended merchant service provider to update both their hardware and software to begin.

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SMBReviews is committed to providing small and mid-sized business owners with the information and resources they need to select the best service or product for their company.

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