The recent release of Apple Pay has injected a shot of life into Near-Field Communications (NFC). The contactless form of payment is made when a consumer makes a secure transaction with his or her smartphone at the point of sale. No swiping of a credit card is required as the payment is finalized using a smartphone and an NFC-capable terminal or point-of-sale system.
New NFC-based technology has developed with security as a top priority, especially considering the latest high-profile data breaches. Payment security is a primary talking point in the industry as consumer awareness for data breaches increases. Customer concern about information security has grown, and merchants can help combat this issue by implementing NFC technology in their storefront locations.
In addition to improving payment security, NFC-based payment processing also gives consumers another option to complete a transaction. Merchants that offer contactless payments empower the consumer and give them the option to pay how they want to pay. A merchant that demonstrates it values its customers' desires will likely secure recurring business from them.
In fact, early adopter merchants have seen a 40 percent increase in average ticket amount since the time of implementation. Local businesses have also seen a 35 percent jump in frequency of everyday transactions with NFC technology. A quick, seamless means of payment enables the customer to make purchases faster and more easily, which could ultimately boost sales each time a client enters the store.
As the deadline for EMV chip-based technology approaches, merchants will likely have to upgrade their payment processing equipment to comply with industry guidelines. EMV-capable payment processors come equipped with NFC-capable technology, so merchants should be looking to implement new transaction hardware in the coming months to better serve their customers' payment preferences.