Have you ever wondered how contactless payment actually works? Well, it’s an area of technology that’s quickly growing. Here’s what it is and what it can be used for going forward.
How Does it Work?
NFC technology might seem complicated, but the technology is actually very simple indeed. It’s a method of wireless data transfer without even having to use the internet. To do this, it uses an NFC chip to make this possible. It has to be activated by another chip before it can work properly though.
When the two chips are placed next to one another, data can be transferred from one to the other. This means it can be used to pay for things in shops that participate. There is no pairing code involved in connecting the two because the method of communication is very power-efficient. You can find out more about what goes into making NFC technology online.
A Digitised Wallet
The main use of NFC technology so far is in contactless payment technology. By using the chips in smartphones and payment devices, you can hook up your bank account to your phone and use it to pay for things. Of course, this only works if the correct chips are being used on both sides of the transaction.
But this is eventually leading to the digitisation of our entire wallets. The technology is still in its infancy, but many people are predicting big things for the future. One thing’s for sure; the way we pay for things is changing thanks to the improvements and advancements in technology.
Real World Consequences
The vast majority of smartphone manufacturers make their phones with built-in NFC functionality. This is becoming more and more common as manufacturers see the trends in the market starting to change. They don’t want to be left behind as this really starts to take off and become common in the world of commerce.
Users usually have to download an app that allows the payment method to work in participating retailers. Apps like Samsung Pay and Android Beam are being used by people all over the world. But we’re still not at the stage where this form of payment is being adopted by the major high street retailers.
The Future of NFC
The future of NFC technology is looking bright. The changes that it will eventually bring could be revolutionary for not only how we pay for things, but also how we transmit all kinds of data. For example, you might not have to have lots of different shop loyalty cards, credit cards or library cards. They could all be transferred to your phone, and their data could be transmitted using NFC chips.
This could mean that we no longer carry around ten different cards in our wallet. It seems a sensible direction to move in, and it will be interesting to see how rapidly this technology is rolled out. It will probably take years before the various industries realise the potential of NFC, but we should get there eventually.