The Pros & Cons of NFC Technology in Payment Card Processing

Posted by Jayme Moss on Jan 6, 2015 3:57:00 PM

NFCNear field communications technology refers to the wireless technology that replaces Bluetooth and securely transfers data between 2 devices that are in very close proximity using radio waves. It is the technology that powers Mobile Wallets such as Google Wallet, Softcard, and Apple Pay.

NFC is the newest available card processing technology in the payment card industry, and like all new technologies, you need to evaluate if you want to be an early adopter, or take a wait and see approach. Here are some pros and cons to assist in your evaluation:


Pros of NFC

  1. Your customers already have all their important information on their phone – why not use NFC to let them pay with their phone too?

  2. It’s convenient – who doesn’t want to pay with something so convenient?

  3. Easy-to-use – anyone can use it with a single touch.

  4. Works in a broad range of industries – and most likely yours! Movie theaters, clothing stores, and public transit are just some examples of industries that use this technology.

  5. Secure – you transmit the data over a very short range! And, NFC-enabled credit cards are much more secure than the old ones with a simple magnetic strip. Colleges have also used it as a method of accurately identifying students and staff as they exit and enter their premises.

  6. Private – you can tell your customers you no longer have access to their private information.

  7. Makes a great impression on your customers – when they see you adopting the latest technology that benefits their best interests, they can’t help but think well of you.

  8. Most retailers will be using it – this article asserts 86% of POS terminals in North America will use NFC by 2017. That’s not everyone, pretty darn close. Europe will be similar. It’ll make life easier for your customers if you have it.

Cons of NFC

  1. It gives hackers more incentive to access people’s smartphones because more valuable data is stored there

  2. Fraud risk – debit cards clear money immediately. NFC, however, requires an overnight update to actually clear the funds.

  3. Widespread adoption requires use of incentives – not all retailers are on board with using this technology yet because consumer demand isn’t high enough.

  4. It may not catch on permanently (although it might) – because NFC may or may not become something everyone uses, you might implement it, only to see something take its place right away.

Solupay can help you make the decision whether NFC technology is right for your business as a card payment solution.​

Learn More About Solupay

Topics: NFC

POPULAR POSTS