Convenience of "Tap-and-Go" NFC Mobile Payments

February 24, 2023 by Macie Blakeman | BLOG

Skip the Wallet: Convenience of "Tap-and-Go" Mobile Payments

Every day, consumers are increasingly choosing NFC tap-and-go payments using their smart watches and phones instead of reaching for cards in their wallets. Mobile payments are fast, convenient, and, best of all, contactless. By enabling tap-and-go payments, NFC technology allows contactless communication between mobile devices such as phones, smartwatches, and tablets through data-sharing.

Here's what you should know about the NFC technology behind contactless payments and why users would choose this technology over the traditional credit or debit card.

How NFC Technology Works

Near-field communication (NFC) technology allows a data exchange between data readers, such as those offered by Socket Mobile, and mobile devices that use Google Pay e-wallets, Apple Pay, and other mobile payment options. NFC technology is similar to RFID. The main difference between the two is that while RFID can be used within 4 inches, while NFC must be 2 inches or closer for added security. A customer paying with a tap-and-go option must place their device close to the payment reader for data to be exchanged.

Why Consumers Would Choose to Use Tap-and-Go Technology

Tap-and-go payments are made via smartphones and watches when consumers open their mobile wallets and place their devices close to the reader to activate a payment. Encrypted data is exchanged quickly, which makes for fast checkout. Thanks to the speed and convenience of mobile payments, this is becoming a preferred payment method by many consumers and businesses.

Since consumers can pay via their smartwatch or other mobile device, this allows them to leave their wallets, credit cards, and cash at home. This means no more fumbling through wallets trying to find the right card and minimizing the risk of lost or stolen wallets. Consumers can even make a payment solely with their smartwatch without having to have a mobile phone on their person. This makes NFC payments an attractive option for those who don't always choose to carry a mobile phone.

It also allows for contactless transactions, where users don't need to touch the console to make a payment, preventing or minimizing the exchange of germs. For this reason, consumers started to turn towards NFC payments during the pandemic, and they have only gained popularity since.

Security Concerns Regarding Tap-and-Go Payments

Tap-and-go mobile payments are relatively new, so there are genuine concerns about security. A few that consumers have presented include:

  • Safety of private information and money
  • No payment security in the event of losing a phone or watch
  • Exposed mobile wallets
  • Cloning of applications
  • Network risks

It's important to note that NFC payments are generally more secure, as one's mobile device (and banking/payment info) is typically protected with a private passcode or facial recognition. No more worrying about stolen wallets or purses. And even if the phone is stolen, the banking info remains inaccessible. Whereas if a traditional wallet is stolen, the thief has instant access to credit card numbers and other personal information.

With credit cards, the magnetic strips use the same data for every purchase. Mobile payments, however, are encrypted, so the payment data changes every time a new purchase is made.

The bank replaces bank details of the consumer's credit card that has been loaded into their phone with random numbers, which are then sent to Apple, for example, and programmed into the consumer's phone. When a purchase is made, a temporary number is sent to the point-of-sale, which is used only once.

Choosing the Correct Data Capture Devices

Choosing the correct data capture device means protecting consumers' privacy and money. Not all readers are NFC-enabled, so it's important to verify that the one you choose is. There are a number of factors to consider when selecting an NFC reader, including:

  • Compatibility with operating systems used by businesses
  • Compatibility with the software used
  • Compatibility with the NFC chip
  • Password lock protection
  • Encryption
  • Choosing between offering open or closed-loop payments

Socket Mobile's readers are designed to facilitate secure mobile NFC reading and payment processing. Our mission is to supply businesses with NFC readers that help launch businesses into a new era of payment methods. Our NFC readers have the ability to complete secure, closed-loop payments. When businesses integrate with our readers, they can avoid common open-loop payment fees while enabling tap-and-go technology's convenience. Our products enable users to leave their wallets at home using contactless NFC technology, helping businesses provide the ultimate customer experience.

Integrate one of Socket Mobile's Contactless NFC Readers Opens Worldwide Website and provide seamless tap-and-go payments for your customers.