NFC: What is it and how does it work?

Tips

June 27, 2023

—5 min

NFC (Near Field Communication) is a widely used short-range wireless communication technology in Android and iPhone smartphones.

An NFC payment made at a restaurant table

WHAT IS NFC?

It allows users to transfer information by simply bringing their phone close to an NFC-enabled card or device.

This technology has many practical applications, particularly in the fields of mobile payments and transportation. By activating an NFC-compatible application on their mobile phone, users can make quick and secure payments and share data and information with other NFC-compatible devices. Through near field communication, NFC eliminates the need for wires and facilitates fast and secure exchanges between devices.

Tech giants like Apple with Apple Pay and Google with Google Pay have also equipped their smartphones with this technology to offer a contactless payment experience.

CONTACTLESS MOBILE PAYMENTS WITH NFC

As explained earlier, NFC enables users to make purchases using their smartphones.

There are two options for this: paying contactlessly directly with a bank card on an NFC-enabled mobile device, or registering one or more bank cards on a smartphone and then using the phone to make payments by bringing it close to the payment terminal.

The main advantage of using a mobile device for payments is the ability to make contactless payments for any amount without entering a PIN code. This is made possible by using biometric data, such as fingerprint authentication, at the time of payment, which replaces the need for a PIN code. It is convenient and equally secure.

However, please note that your card may not be compatible if your bank is not associated with the application (Samsung Pay, Google Pay, Apple Pay, etc.) provided by your phone brand.

Additionally, depending on the model of your phone, the payment application you want to use may not be compatible with your device.

Moreover, merchants using Android devices can transform them into full-fledged payment terminals with the SoftPOS technology, particularly with PayWish.

This solution offers several advantages for merchants:

Firstly, it is easy to install and use. Like any application, merchants only need to install the application by downloading a file provided directly by Market Pay or retrieved from the Play Store. To use it, the merchant only needs to set a password to access and use the application, similar to a traditional POS terminal.
Furthermore, the application offers economic advantages. Since the merchant is using their own phone, they no longer need to purchase and maintain a separate payment terminal, allowing them to save costs.
With its features, PayWish enables merchants to assist their customers throughout the entire purchase process without having to go to the cash register. They can provide advice on different items and directly process the payment without any interruption.
Lastly, PayWish offers flexibility to the in-store merchant. If one of their traditional payment terminals breaks down or during peak times when there is high customer traffic, the merchant can use the application as a temporary or backup solution to expedite the payment process.

Please note that this application is currently available only on Android.

WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF NFC?

Advantages of NFC

NFC offers numerous advantages. It enables convenient interaction between mobile phones and NFC-compatible cards or devices, allowing for easy transfer of information such as photos, contacts, and even more complex data like applications.

The uses of this technology are diverse, especially in the fields of mobile payments and transportation. By using an NFC-based payment application like PayWish, merchants can offer their customers the ability to make secure and fast payments without the need for physical cards.

Moreover, NFC facilitates secure sharing of data and information between smartphones and other NFC-compatible devices. One of the main advantages of NFC is its limited range, ensuring secure communication over short distances. Unlike wired connections, NFC eliminates the hassle of cables and enables convenient and reliable exchanges between devices. In addition to providing a payment solution, NFC offers a secure experience for both merchants and customers.

Apple Pay and Google Pay have integrated NFC into their payment solutions to offer a contactless payment experience to their users. The possibilities offered by NFC are vast, and the companies working on this technology continue to create innovative applications that leverage its potential to enhance the security, convenience, and connectivity of mobile devices.

Disadvantages of NFC

While NFC offers many advantages, it also has a few minor disadvantages to consider. Not all Android and iPhone devices are necessarily compatible with NFC, limiting access to this technology. Additionally, to use NFC, a specific application needs to be activated on the mobile phone, which can be cumbersome for some users who are less comfortable with digital technology. Although NFC security is high, merchants and consumers still need to be vigilant in using their devices and stay informed about the latest recommendations to avoid any security vulnerabilities.

HOW TO ACTIVATE NFC ON YOUR SMARTPHONE?

Activating NFC on Android

To activate NFC on an Android device, follow a few simple steps.

First, go to the settings on your phone and look for the "Connections" or "Network and Internet" section. Within this section, you should find an option called "NFC" or "Near Field Communication." Tap on it to access the NFC settings. Then, enable the corresponding switch to activate NFC on your device.

Once activated, you can use NFC features such as mobile payments or data sharing by simply bringing your phone close to other NFC-compatible devices.

Activating NFC on iPhone

On an iPhone, you can activate NFC by following these steps.

Go to the settings on your iPhone and look for the option called "Settings." Within this section, search for "NFC" in the list of options. Tap on the NFC option to open the settings. You will see a switch to enable or disable NFC. Simply toggle the switch to activate NFC on your iPhone.

Once NFC is activated, you can enjoy similar features as Android, such as contactless mobile payments and information sharing by bringing your iPhone close to other NFC-compatible devices.

WHY USE NFC?

As you have understood, NFC is an essential technology to leverage on Android and iPhone smartphones. This technology offers many advantages, as mentioned earlier. That's why Market Pay provides a mobile payment solution that harnesses the potential of this feature to offer a new payment experience for merchants and their customers.

By using NFC-compatible applications, users can make secure payments without the need for physical cards. Furthermore, NFC facilitates fast and wireless communication between compatible devices. With its limited range, NFC ensures enhanced security, as exchanges occur over short distances, eliminating the risk of remote hacking.

By simply activating NFC on their devices, users can enjoy the numerous benefits of a convenient and secure wireless technology for their payment, communication, and information exchange needs.

IS NFC TECHNOLOGY SECURE?

The NFC technology available on Android and iPhone smartphones offers robust security features. With NFC, users can make secure contactless mobile payments. Payment information is encrypted during transactions, reducing the risk of fraud.

Additionally, NFC communication works over a short distance, making it difficult for malicious third parties to intercept data. NFC-compatible applications are designed with advanced security protocols to protect sensitive data, such as credit card information, against cyberattacks. The teams behind NFC, such as Apple and Google, have implemented additional security measures to enhance user protection during NFC mobile payments, and they continuously work to ensure the security of NFC transactions.

Furthermore, activating NFC on devices often requires the use of a passcode or biometric authentication, adding an extra layer of security. However, users should still exercise caution by avoiding sharing sensitive information with untrusted sources and ensuring the security of their devices, including regular software updates. By following these best practices, NFC technology offers a high level of security on mobile devices.