NFC has become the spine of anti-counterfeit solutions which use blockchain technology. NFC (Near Field Communication) has been quite popular with its cutting-edge method of making cryptocurrency payments at merchant terminals for purchasing products and electronic devices such as smartphones to boost the crypto payment gateway.
In recent years, online business participants (retailers and customers) have been concerned about their wireless transactions, which they complete through mobile applications. They select new payment tools and devices that deliver fast and secure mobile payments.
As a result, the futurity of payment gateways depends on cashless transactions. A recent survey has predicted that by 2025, around 75% of transactions will be made without cash.
It can provide an extra level of security, with the confidentiality of each transaction's private key to update blockchain applications. Consumers will greet the replacement of traditional payments as a hassle-free transaction method. Enterprises and retailers adapt to contactless near field communication payment mechanisms as it elevates their enterprise level and extends customer growth.
What is contactless Near Field Communication (NFC)?
To understand NFC and its usability, we need to comprehend what it is.
Near Field Communication (NFC) technology can be used with the blockchain. It has the compatibility to perform contactless connection between devices within a range of four centimeters. Most devices use NFC for payment processes. Financial services often include NFC in banking applications.
NFC already made its entry in the late 90s, but it was less popular at that period. The 21st century has witnessed the rapid use of smartphones and mobile wallets, which rationed the reemergence of NFC. It can be incorporated both in software and hardware cryptocurrency wallets to make cryptocurrency payments.
Why do Consumers demand NFC payment platforms for cryptocurrency?
New merchant processing and point-of-sale platforms have been introduced into the market at a rapid rate over the last few years, and mobile payments such as contactless near field communication, are evolving almost daily and will impact the cryptocurrency platforms. The financial institutions store the credit card holders' account information on the server. The world has witnessed the unstable situation of using credit cards which can easily be hacked by hackers.
Blockchain technology has emerged as a wholesome solution. It reduces the payment processing time and accelerates the transaction speed. Cryptographically secured transactions are executed through blockchain which is tamper-proof, evident, traceable, and immutable. This shift precipitates a need for retailers to adapt toward fast, simple, and secure mobile payments. In addition, the growing prevalence of cryptocurrencies as an investment option among millennials is fueling the market's growth.
Given the enormous growth and increasing popularity of cryptocurrencies, around 1385 different cryptocurrencies are trading with a daily volume of over 71 billion dollars. During the pandemic period, people preferred cashless payments more comfortably. The paper currencies were no longer circulated as China infected it, many countries like the US and South Korea have taken measures to stop the widespread of the virus.
Rising confidence of consumers in digital payments
Our world is riding on a new wave of digitized services and payments, signifying a transformational process deep-seated within the way transactions are carried out by individuals and enterprises.
In the year 2019, Zelle, the US-based peer-to-peer payment service provider sent 39 billion dollars through its network via 147 million transactions, and in return, the payment volume has increased by over 72% compared to the last year. Zelle said in the following year, “more than half of the people sending payments through its peer-to-peer payment services.”
Besides that, many supermarket enterprises have adapted to cashless stores, most importantly the American Supermarket chain, Publix Supermarkets has installed 1200 outlets across the US to use new tap-to-pay systems.
Other industries like museums and theme parks have integrated touchless payments. Louvre Museum in Paris and Amsterdam's Rijksmuseum install a cashless payment system using wave payment options for purchase at a POS terminal. Japan amusement park has advised visitors to use cashless payment methods for shopping for products and buying beverages through NFC bank cards.
In the current situation, contactless NFC payment is convenient for consumers and merchants.
Why do Merchants demand NFC Payments for Cryptocurrency?
The futurity of cryptocurrency in this sphere is backed by retailers and consumers. This system has lots of solid benefits, such as lower transaction costs, speed of payment, removal of national boundaries, protection against fraudulent payment, chargebacks, etc.
Merchants have gained confidence knowing their payments are securely received and validated by blockchain. Contactless NFC payments make it easy for merchants to settle in equivalent fiat currencies such as Dollars, Euros, Sterling, etc. Buyers will buy with the same confidence knowing their payments are securely recorded in the blockchain's immutable records, which are open to authorized parties to verify anytime.
As a spectral Blockchain Development Company, we accomplish the integration of NFC technology along with prominent blockchain networks such as:
- Hyperledger Fabric
At NFC Direct, we have our eye on all of the developments surrounding Blockchain and NFC and are capable of collaborating on projects related to Blockchain technology.