NFC Mobile Payments in the Retail Sector

Research has shown that payment methods and mobile technology in the EU have always been ahead of that in the USA. This research debunked the perception that the USA was better known to adopt new technologies at an early stage in their development. It has been shown by the above survey that stateside mobile networks in the USA are about 10 years behind those of Europe. Moreover, their payment methods too lag behind those found in the European Union. The society in the USA still seems to be cash-based, what with the large reliance on cash payments at retail stores.

But in Europe, 6 out of the 7 retail transactions conducted are done using a card. This tendency of the EU to move towards a cashless society has many benefits for its own government. However, in the USA, the Americal Express has recently divulged their roadmap for Europay MasterCard Visa or EMV for short. This has got the thinkers on their toes again as they are wondering about the future state of the payment environment in the USA. Europe has already started using the NFC mode of payments which are nothing but paying for the products or services you enjoy using by merely flashing your smart phone.

However, USA has still not embraced this technology on a large scale although there are some quarters where it is being accepted. Europe has already been using the EMV technology for the past six years much before the USA announced it in their country. When we see this development in the light of the fact that any technology that is a decade old is called as old technology, we can safely say that the USA should not have announced their move to embrace EMV payments. Instead they should directly have moved to the NFC mode of payment that is currently being used in the EU. 소액결제현금화

An NFC payment method enables a customer to make payments for his products or services by just flashing his NFC enabled mobile phone in front of a payment terminal. Although, the EMV payment method has its own security advantages, the USA is still far behind the EU in embracing this technology. In the EU, this payment method has been embraced long back and its security advantages have also been adequately documented. This payment method has said to reduce fraudulent transactions throughout Europe and it is difficult to understand why the USA did not realize the advantages of this payment method six years ago, when it was introduced in Europe.

However, it is pertinent to mention out here that not all NFC payments technology is problem free. This is evident in the fact that Paypass and other card networks for mobile and micro payments, charge merchants 0.15% plus 0.025Euro in interchange fee, every time a transaction is conducted. This means that this mode of payment cannot be used for relatively low value items such as a 2 Euro Ice-cream, where the merchant actually does not make a profit. Thus, although NFC payments are being touted as the next big thing in mobile technology, there are some questions about this technology that have no answers.

 

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