How is NFC different from other payment mechanisms?

How is NFC different from other payment mechanisms?

Introduction

We have heard a lot about Apple Pay and Google Pay. However, does anyone know what they represent? They are nothing, but NFC mobile payment types. NFC happens to be a major technological breakthrough, which has given consumers the facility of tap-and-go. At the heart of every mobile action is a tiny microchip and radio antenna performing the tap-and-go functions that is near field communication (NFC). This encryption technology is changing the manner in which users are obtaining information, offering payments, and exchanging data across devices. This write up is nothing but a genuine effort to intimate people about the entire spectrum of the NFC mobile payments.

What do you mean by NFC?

This is nothing but a mechanism that permits contactless communication to facilitate data exchange between devices such as smartphones, tablets, and laptops. With NFC at your disposal, you can simply wave your phone in the direction of an enabled device and exchange information without the need of a connection. Given the ease and swiftness, the technology has become a widely used one.

Its way of functioning

It is very convenient to conclude that NFC is nothing but another form of Wi-Fi or Bluetooth technology. All the three work on the mechanism of wireless communication and data transfer, however there is a difference. The NFC functions by utilizing electromagnetic fields, but both Wi-Fi and Bluetooth rely on radio transmissions. NFC happens to be a section of RFID (radio-frequency identification), a technology that helps spot things via radio waves. RFID is not a new phenomenon, in fact, the technology has been in vogue for decades in the form of activities such as scanning things at grocery stores and luggage on baggage claims. The basics behind the technology are very similar, but the operation is restricted to the extent of proximity. For the majority of users the proximity control is an important security aspect considering the crucial part it plays in mobile payment.

Types of NFC devices

NFC devices are of two types: active and passive. Passive devices comprises things such as smart posters, merchandise beacons, and contactless POS terminals. These can make available information for active devices, but cannot obtain external information. As for Active devices, they can dispatch radio-frequency currents that communicate and get data from enabled hosts.

Not a mere digital wallet

NFC can be easily restricted to the aspect of mobile payment, but the reality is that it can be used in many other arenas apart from tap-and-go purchases. NFC can be a potent tool for interactive marketing. Armed with NFC, marketers can easily reach out to their target audience by using instant data and delivering personalized messages. With the help of NFC, it becomes easier to promote loyalty programs and cut out the possibility of gathering multiple rewards cards. The NFC’s ability to engage customers can be best illustrated with the real estate market. By tagging NFC on real estate, signs, or listings a buyer can be helped in various manners. Apart from providing details regarding a property, agents can also give images, floorplans, graphical representation of the whole property, and other things buyers would love to know. This type of interaction can be a very meaningful way to establish valuable connections between brands and their consumers.

Security Concerns

It can be worrisome for some people to perform transactions via mobile phones. After all, everyone desires safety of their data and money. Even with banks and credit card safety is of paramount significance. As far as electronic transactions are concerned there is a modicum of risk. However, payments made via NFCs are considered they are very safe and secure. The data in an NFC transaction is encrypted and dynamic, implying that it keeps on changing, dissimilar to the data on a swipe card, which happens to be static—data remains on the rear of your card. So, NFC is a mechanism that ensures secure monetary transactions.

The way of functioning of Dynamic Encryption

Instead of storing the credit card number of the device, mobile payments utilize something called tokenization. In case of Apple Pay, once a snap of a credit card is taken and loaded into their iPhone, Apple dispatches every particulars to the bank pertaining to the card or network. After this, banks and networks hide the bank details through a series of randomly generated numbers. The number is then sent to Apple, which programs it back into the phone of the user. This implies that the particulars of the account on a phone can’t be exploited by the scamsters. Whenever there is a transaction, the phone dispatches a short-term number to the point-of-sale and this can be used only for that particular transaction. This number is different for any new transaction. Thus the encryption process involved severely restricts the risk of manipulation or theft. On top of this security feature, Apple Pay is also fortified by Touch and Face ID, fingerprint technology of Apple. This means even if you misplace or lose your phone, nobody can do anything with Apple Pay. As it requires either your fingerprint or face to recognize your identity. This also explains why the Apple Pay functions only with the latest iPhone models, that comes with the added layer of protection like Touch ID.

Google Pay and HCE

Contrary to Apple Pay, Google Pay works with HCE, or host card emulation. Over here, the user’s physical card is imitated in a different manner as the account information is kept in the confines of the cloud, as against the device. In this payment mechanism as well a certain degree of tokenization comes into play as the payment data is kept safely in the cloud, however the tokenization method is also cloud-oriented, which according to a few is not that secure.

Emvco

EMVCo enables worldwide interchangeability and availability of safe mobile payments. The organization is gradually progressing towards stating the architecture, specifications, needs, and type approval processes to complement the EMV mobile NFC payments. These include:

  1. Needs related to the sanctioning of product type
  2. Prime operational criteria for mobile devices
  3. Substantiation processes of a Cardholder
  4. Certification needs like a security assessment for the SE having the payment application
  5. Needs for recognizing EMV application on an equipment
  6. Conforming to a reference application activation user interface (AAUI) on the mobile phone

What future holds for NFC

In the times to come , NFC has a huge opportunity to eliminate every cash card in your purse. Considering the current scenario, the various digital technologies are quickening the prospect of a cashless society. NFC mobile transactions not only lessen the variety of surfaces we come into contact with (i.e., credit card, POS terminal, etc.), it is also very convenient, quick and safer. The time is ripe for companies to look for every possible way to integrate NFC into their mobile strategies. With NFC at your disposal, a safe, swift and smart money exchange environment is within your grip.

Most Demanding Mobile Technology After COVID-19 World

Most Demanding Mobile Technology After COVID-19 World

The present COVID-19 outbreak has completely changed what  the world meant for all of us . The COVID-19 pandemic has not only impacted economy , but has also largely affected our daily lives , and things as assumed are not likely to return to normal even after pandemic ends . Nobody knows when this pandemic is going to end from the world , and that is the reason many business has been forced to suspend their operations which has lead to affecting their bottom line . But the good news is it has also aids to accelerate development of several emerging technologies . These technological innovations is focus on reducing human to human contact , process automation , productivity increment , all due to social distancing norms .

Upon passing of time , more and more data emerges which offers plenty of rooms for business organisation in order to overcome with challenges that has been bought on by this pandemic and to stand stronger on the other hand for business worldwide . In this article we are going to discuss most emerging mobile trends that business should keep on their hotlist in order to adjust to post COVID-19  world .

Most Demanding Mobile Trends After COVID-19 World 

5G Connectivity

List of questionaries about 5G technology and its deep impact on next generation connectivity and services has been circulating worldwide since last year or so . But the fact is technology is yet not widely been available . If you are among those who is thinking 5G is just another upgraded version of 4G , then it is not . 5G is entirely new network infrastructure , and has been assumed to have potential  to revolutionise the complete mobile network function . Telecom operators are slow to completely roll out this technology and thereby offering limited 5G service .
But the question is why telecom providers are not completely rolling out this technology ? One of the reason being they are still not confident about the demand it would have from consumer side . However due to present COVID-19 , the 5G market may materialise sooner than expected . In the time of social distancing , everyone has been forced to isolate , thereby increasing the demand for working from home as well as studying from home which creates higher demand for bandwidth .
Long back in October 2019 , CCS Insights has predicted there will more one billion user of 5G by mid 2023 , which clearly states it will take less time than 4G to reach the same milestone . However due to current scenario , wherein people are seeking faster data sharing with increased connectivity speeds , rapid acceleration of 5G technology will facilitate user with meeting higher bandwidth demand and capacity challenges for existing infrastructure will also be addressed .

Cloud Computing 

Cloud based mobile applications are already gaining popularity even before the pandemic , due to recent outbreak of COVID-19 , demand for easy access through remote servers as well as storing of large data sets on cloud without effecting device storage is getting attraction throughout the pandemic . On the basis of this metrics , post COVID-19 world , cloud technology will tend to increase for all types of apps .
As the virus spread day by day .  people are forced to work from home and demand for online learning models as well as cloud based video conferencing and teaching is skyrocketing . As a result various cloud vendors has upgraded their resources to meet demand , which includes Zoom and Microsoft Teams . Youku and Ding talk (all-in-one platform under Alibaba Group ) in China launched campaign to attend classes at home has facilitated various students to learn in secured environment .
As a way forward , many business and educational industry are more likely to continue to implement this technology as future behaviour of both employees and students will change . As the demand will continue to increase in future , implementing this technology into mobile application will surely become key to success. 

Artificial Intelligence (AI)

Post COVID-19 , consumer behaviours will no way go back to normal . Consumer will tend to purchase goods and services online as well as tend to work remotely from home will continue to increase . The roadmap for post COVID-19 world can’t be predicted , but one thing is sure that application of artificial intelligence (AI) will act as a helping hand to adapt to new trends .
AI can be proven beneficial for those who are into retail and supply chain industry .With the additional use of machine learning and data analytics technology , AI can help in prediction of new purchasing pattern as well as delivering great personalised experience to online consumers .
AI tools facilities reading customer behaviour , image recognition , human speech and many other and collect data from these to learn underlying patterns . Their capabilities are extraordinary valuable which aids companies to adapt to next normal once this pandemic subsidise .

Virtual Reality / Augmented Reality (VR/AR)

Not particularly because of this pandemic , demand of AR/VR is already at its high . People are making use of VR headset to play video games , explore virtual travel of world as well as for online entertainment . Now as they are isolated at home , they are making use of this technology to interact with human through social VR platform such as Rec Room , AltspaceVR , Bigscreen and VRChat .
Business is now being seen implementing VR platforms to hold video conferences , train employees , collaborate with team on project as well as making connection with employees virtually . For instance say Scientist worldwide has switched on Nanome which is again a VR software which facilitates molecular design for team collaboration on coronavirus research and its potential treatments .

According to latest eMarketer article , VR headset marker , HTC has held its very first ” VIVE Ecosystem Conference ” solely using VR .

Now as a business and consumers are getting more familiar to this technology , we are more likely to see more virtual video conferences and human interfaces as our new normal sets in .

Voice-Tech In Mobile Solution 

As consumers are getting concerned about their mobile devices now a days ( which are touched more than 2600 times in a day ) as it can spears coronavirus . As a result of fear of germs spread , they might make use of voice tech technology which actually have potential to reduce the number of times one touches any mobile phones .
Voice usage will continue to increase tremendously and is expected to expand to other components which are smart and can be major germs hub . For instance implementing voice tech on lights , switches , music players , entertainment components will help in less need to physically touch them .

Conclusion 

The aftereffects of this pandemic can’t be predicted at current stage . But one thing is sure , whenever companies begin to shift back to their recovery , the demand for digital transformation initiatives will surely tend to increase at tremendous scale and . This pandemic will force business worldwide to adopt to emerging mobile technologies . Also in order to get ahead of their competitors , business will surely adopt measure to be ahead in the race . As we have stated above , shifting your business towards this advance solution can overcome with business risk which is associated with COVID-19 pandemic and this technologies will also help your companies to run smoothly even now as well as in long terms .