Just one week ago, Samsung announced that its mobile payment and digital wallet service, Samsung Pay, reached 100 million transactions in its first year. Not only is this an important milestone for Samsung Pay, it is also evidence that NFC is truly beginning to take over the world of transactions.
While NFC has a number of applications, its greatest success has been in commerce. Reasons for this include its convenience, ease of use, and cost effectiveness. In today’s world, less is more, and the less effort one has to make to purchase a product, the better. Most major retailers have implemented NFC payment, and the reception has been quite high. According to an article by Digital Journal, 75% of retailers in Canada support contactless payment methods, which include NFC, while in the UK and US, approximately 17% of retailer terminals employ the use of NFC. And the numbers will only continue to climb. According to analysts at Technavio, the global NFC payment market is expected to grow at a CAGR of 40% by 2020. With big players like Samsung, Apple, and Google in the competitive space, it is clear that this market is headed in a very upward direction.
NFC payment, also referred to as “tap-to-pay,” began with mobile devices and apps, and ultimately made its way into the wearable space. The latest in developments is Visa’s NFC ring, which was debuted at the Rio Olympics, and has been released to the public as of several days ago. The idea behind the ring is to make payment as simple as possible by eliminating the need to carry a device or wallet. Similar to the Apple watch, the NFC ring uses a token system that works once it has been authenticated. The beauty of the ring is that it allows you to make payment as quickly as possible, giving you the power to purchase literally at your fingertips. It can be customized to comfortably fit your finger and is also quite minimal in design, so as not to attract unwanted attention. Most importantly, it’s affordable: the ring retails for only $53 USD.
What’s next for NFC payment?
With NFC payment, the possibilities are endless, as is its benefit to a number of industries beyond the most obvious ones like retail. NFC has begun to make its way into other places that require transactions, such as parking meters, movie theatres, and tourist attractions. Looking ahead, there is a movement to combine NFC and VR in order to allow quick and easy, on-the-go payment at virtual stores and kiosks. The goal with NFC is to streamline payment processes, while at the same time ensure security for both the payer and payee. It is clear that NFC will soon be the go-to method of payment for a variety of establishments, and something that should be paid close attention to in the coming years.
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