Mobile wallets are cell phones powered by NFC chips (Near Field Communication) that allow two devices to communicate data at a close range. After launching a payment application on your phone, the phone is tapped on a NFC enabled terminal and a connection is made. At this point, you may be asked to scan your finger or enter a passcode to approve the transaction. The transaction is then validated and relays that authorization back to the NFC terminal via a secure element one time code. From there, the payment finishes processing the same way it would in a traditional credit card swipe transaction. Retailers including Target, Macys, and Walgreens — already have NFC-based contactless pay terminals in place, making the transition to mobile payments easy. Phones with Google Wallet can currently use these terminals, as can Apple’s iPhone 6, 6 Plus, and new iPad air 2.
Why should merchants accept NFC payments?
Within the 1st year of release apple is expected to have over 60 million NFC enable devices on the market. Combined with NFC enabled android devices this will total almost 500 million devices that may have a mobile wallet. Technology is changing the way customers pay. Merchants need to change as well in order to continue to grow or face losing business.
At Omega Bank Card Services, we install NFC ready devices for our clients and offer merchants the ability to upgrade at no additional costs! Contact us today to learn more about our products and services!