Near Field Communication
Why Your Business Should Consider Near Field Communication in Payment Processing
Though it isn't a new technology, near field communication (NFC) is expected to make a significant leap in 2016. As new payment methods that require NFC continue to surface, including Apple Pay and Google Wallet, merchants are beginning to see the need for implementing this technology.
NFC technology offers many advantages for consumers and businesses. The following are six reasons merchants should introduce NFC to their businesses:
1. Increased customer satisfaction
Improving customer experience is always a priority for merchants. NFC can make transactions easy, as consumers only need to hold up their phones to make a payment. This ease of use cuts down on the amount of time customers have to wait in line, as well as time spent at the register.(1)
Customers can also load coupons and promotions onto their smartphones for easy access during transactions. Furthermore, merchants can place NFC tags around the store to answer consumer questions. A customer simply has to wave their device over the code to learn more about the product. With a simplified shopping and checkout process, customers are more likely to be satisfied with their experience, which can translate to increased customer loyalty.
2. Improved sales
NFC helps speed up checkout lines, increasing customer satisfaction with a business. Client happiness isn't the only element that will be improved, however. Employees may also see a rise in sales. Workers can process transactions more quickly with NFC, enabling companies to increase daily profits.
The technology may also attract new customers who were unhappy with their experiences with other businesses and are looking for an alternative. Consumers may be willing to spend additional time on the sales floor, gathering up more items for purchase, knowing their wait time will be shorter and their transaction will be easier.
3. Lower expenses
Companies that want to use near field communication as a credit card processing alternative can benefit from reduced costs. Businesses will save money on paper since merchants can email receipts to their customers.
In addition, NFC technology can attract more environmentally conscious customers who will appreciate the cutback on paper product use. In fact, 55 percent of global online consumers across 60 countries said they are willing to pay more for products and services sold by companies that are committed to making a positive social and environmental impact.(2)
4. Better employee communication
Along with NFC card readers, merchants can implement NFC tags that improve worker interactions. The markers enable employees to check in at their location, whether it's on the sales or stock floor, allowing management to be aware of where staff is operating. Business leaders can monitor time spent on the clock, as well as the duration of break periods.(3) Workers can also cross tasks off an internal list once they're completed, and let managers know what they'll be working on next.
5. Reduced need for staff
A transition to NFC technology can also have long-term advantages for businesses. Once the technology has been in place for a period of time and the company has worked out any kinks, NFC can help companies cut down on the number of necessary staff personnel.(4) Customers will be able to move through lines and complete purchases with more efficiency, requiring fewer employees to process transactions.
Over time, businesses may realize that crucial tasks can be completed with fewer employees, since the time it takes to complete certain responsibilities – like ringing up a customer – is reduced.
6. Scalable security
NFC is based on contactless smartcard technology, which means it can utilize similar EMV security measures.(5) Encryption can help protect transferring data from being intercepted. Message authentication safeguards messages in communication, and mutual authentication establishes a secure channel between the device and the receiver. Additionally, these features can be expanded or reduced, depending on a company's needs and growth.
NFC technology has been around many years, but is quickly gaining popularity in a variety of industries, from retail to restaurants. NFC offers both companies and their customers an easy and quick method for making purchases. The simple wave of a smartphone over an NFC-enabled credit card reader is all it takes. The system can also improve customer satisfaction, business profits and employee sales. NFC technology may be the future of credit card processing for businesses of all shapes and sizes.
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