NFC Technology: The Backbone of Contactless Payments

April 24, 2024

nfc and mobile payments

NFC mobile payments are a new technology. You should know more about it before your first nfc cell phone payment. All Americans want a safe, secure, and fast payment option. Are you looking for one, too? Well, your search ends here.

Your digital wallets like Apple Pay or Google Pay use the nfc and mobile payments technology. Do you also have a contactless card? The same nfc mobile payment technology is used there. 

In short, it is an encrypted mode of payment. In simple terms, nfc for mobile payments is a secure channel. Your merchant uses this channel to accept your payment virtually. It creates a single-use payment terminal. After that, you must authenticate your payment.

You can do it with a passcode, your face ID, or your fingerprint. After authentication, your merchant gets the payment directly.

Businesses like retail must collect payments quickly. So, they need a strong encryption. But they will also need speed and simplicity. Mobile nfc payments is also the ideal payment collection mode for its flexibility. You can offer a range of nfc and mobile payments options to your customers.

How NFC and Mobile Payments Work?

How nfc and mobile payments work

NFC technology works over radio waves. The waves from the customer and the merchant coincide. Then, it creates a safe and secure payment source. 

This source accepts payments from any digital mode. However, your merchant should have an updated PoS machine to collect nfc and mobile payments.

Many merchants use it, but dont know what are nfc mobile payments. For them, it is just a contactless payment method. In other words, mobile nfc payments allow you to accept payment from your customer’s mobile directly. You do not need to tap or swipe a card for that. 

Why Accept NFC?

Why Accept NFC

NFC has simplified payments. Both merchants and buyers can benefit from its features. 

– Security of NFC-enabled payments

If you don’t know what NFC payment is, you will undoubtedly worry. You would wonder whether it is safe! However, experts say it is safer than swiping a card to pay. 

Nfc cell phone payment allows the merchant to connect with your mobile only once. But no banking details or personal data is transferred or stored. However, a card swipe is not secure at all. The PoS machine can install a chip to siphon your money into a remote source. Also, all your data is exchanged when you swipe. 

Speed of NFC Transactions

Speed of NFC transactions

If you dont know what is a nfc mobile payment, you won’t understand its speed either. But it is four times faster than a magstripe or card transaction. When you pay via card, your bank data is exchanged with the bank’s central server. Then, it is exchanged with the receiver bank. After a secure line is established, the receiving bank sends a payment request to the customer’s bank’s central bank server. 

Then, your bank creates a secure payment gateway for you. After that, you can complete your payment. But nfc and mobile payments use blockchain technology. This technology is already interconnected. So, it creates a fast and seamless payment gateway from your account server to the merchant’s bank server. All four interim steps are avoided.

Convenience of NFC payments

Convenience of NFC payments

 Many merchants in the US dont know what is nfc mobile payment. For them, nfc cell phone payment might seem difficult. However, a merchant only needs an NFC-enabled device. It is a reader that tracks the safe payment window and completes the payment in no time. 

The readily available nfc mobile payment devices in the USA are “Square Point of Sale” or “Square for Retail”. The merchant can allow the customer to pay using any digital method. The payment will be directed to the bank account linked with the merchant’s mobile number. 

How to Pay with NFC?

How to Pay with NFC

Some easy steps are enough to pay with NFC. However, you will need a good understanding of how NFC works for you. 

Setting Up Mobile Wallets

Setting up mobile wallets

Many customers might not know what is nfc mobile payment. Firstly, you must set up a mobile wallet to use nfc for mobile payments. Secondly, you must link your card with the wallet. You can use a new card every time. However, experts recommend saving a card for regular transactions. 

The third step is payment processing. When you pay, the chip or QR in your app authorizes the transaction. After that, you will receive an OTP. This is the last step of payment processing. You can bypass this previous step if your fingerprint is enabled in your digital wallet. 

Using Apple Pay for NFC Payments

 Apple Pay is the most popular mode of making NFC payments in the USA. Also, the the Iphone provides the easiest way to set up nfc and mobile payment options. 

First, you must upload your card details to the Apple Pay app. After verifying them from your bank’s server, Apple clones the actual card details with random numbers. It is an added security feature that is missing in many other digital payment options.

Lastly, you must bring your phone near the merchant’s device to pay.

How to Accept NFC?

How to Accept NFC

Have you set up your merchant account? Before that, you need to buy a reasonable NFC-enabled device that your customers can pay for. 

Setting up an NFC-enabled Reader

You and your merchant should both have an NFC-enabled reader. Already, 58% of the retailers are using an NFC enabled readers to accept payments

In the modern day, all mobiles have built-in NFC enable readers. First, open the “Control center” on your phone. Then Tap on the NFC tag reader option to activate it. 

The steps are slightly different for Android phone users. They must click the settings option. After that, the “Connections” menu will appear. The “NFC and contactless payments” option is available under the settings menu. As you tap it, your NFC enabled reader is activated. 

Setting Up a Merchant Account

Merchants can buy an NFC enabled card reader. All devices run on specific software. Square is the leading seller of NFC devices in the USA. After downloading the software app, link to your bank account. After that, you should enable permission for the software to sync with the NFC tag reader on your phone. 

The last step for merchants is ensuring they have a merchant account with their preferred NFC payment processor. It’s easy and can be set up in minutes. 

When someone pays through NFC, they will tap the card, NFC tag, or mobile on the merchant’s NFC device, and the payment will be made in seconds[1]

Best Credit Card Processing Services for NFC Mobile Payments

In the USA, there are many NFC devise suppliers. Some excel in speed of transaction. While others claim to add more security in transactions.


The contactless payment gateway of Stax is flexible. It creates a dashboard that tracks all the accounts where you are receiving your payments. It is helpful for the merchants. 

Without any individual configuration, your Stax account creates a merchant window for payment acceptance at any PoS. It is suitable for merchants with multiple stores. 

 – Chase Payment Solutions

Chase is a faster option for directing payment from a customer’s credit card transactions. It also offers a dashboard to integrate payments from various credit card vendors. Chase’ app is easy to use as well. 


Helcim claims to have the most secure NFC payment gateway. states that you can use Helcim for receiving payment from international credit card transactions. Its aggregator platform converts the money into your local currency. 

North American Bancard

One of the most favourite mPoS service provider is North American Bancard. Merchants get a free PoS system for processing credit card payments through NFC. They charge 0.29% from merchants for processing. It is lesser than Helcim which charges separately for currency interchange. 


After reading this article you know what is an nfc mobile payment. Its benefits are clear to you, as well. Mobile nfc payments made transactions easier and simpler. But most merchants use it for its speed. The payment processing NFC device provider can aggregate merchant payments into a single app. 

Every merchant has unique business needs. For emerging stores with multiple small outlets, the best option is Stax. But small stores can use North American Bancard. Chase Payment Solutions is suitable for businesses offering premium products or services, as its dashboard can seamlessly connect with all card vendors. I will recommend all merchants to develop a good understanding of nfc and mobile payments, before starting to accept payments. It is simple. But steps like setting up a merchant account can be tricky as well.

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Ankita Tripathy

Ankita Tripathy loves to write about food and the Hallyu Wave in particular. During her free time, she enjoys looking at the sky or reading books while sipping a cup of hot coffee. Her favourite niches are food, music, lifestyle, travel, and Korean Pop music and drama.

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