What is NFC?

The name NFC is short for "near field communication," a short-range wireless data transmission technology for exchanging data between devices. Basically, it is a variant of coded radio communication, which operates at a frequency of 13.56 MHz.

The data rate can be 106, 212, or 424 kbit/s. This is enough to transfer data, images and even music. The most common application of NFC is various contactless cards and devices that emulate them, and the main area of application is contactless payments.

Contactless payments are ahead of usual cards

Card payments are becoming more and more popular in the world. According to the forecast, in 2022 the share of payments by cards will increase to 70%. In this case, the number and volume of transactions is growing steadily since 2008, and last year there was a record - 35% - increase in the number of payments for goods and services by card.

At the end of 2021, card payments exceeded cash payments and accounted for more than 50%. According to statistics, in the first quarter of 2020, the share of cards increased to 8 out of 10 payments, and the use of cards for cash withdrawals fell to 28%.

So, paying by card has become the most popular way in Europe and around the world. And how are things inside this category?

There are three types of cards in use in the world today: magnetic stripe, chip, and contactless. According to the first quarter of 2022 the share of contactless NFC-payments in merchant acquiring exceeded 80%. One of the main reasons is the speed, simplicity and convenience of payment. That's why many companies want to be able to pay with NFC-payments and are turning to https://wallester.com/.

Apple Pay, Google Pay, Samsung Pay - what do they have in common?

The most important thing about contactless payment is the NFC chip and antenna. They are so small and flat that they can even be hidden in a standard plastic card. And a smartphone or other mobile device emulates the cards that are tethered to them. It's more convenient than lugging a half dozen pieces of plastic around in your wallet. The main contactless payment systems used around the world are Apple Pay, Google Pay and Samsung Pay.

Incidentally, the small size of the chip and antenna allows the NFC-module to fit almost any device. There are already "payment" and "travel" rings, which are worn on a finger, in large chain coffee houses customers pay by name mugs, and on the heels of smart watches come the fitness bracelets and navigators with payment function.

Despite the difference in form, the principle of contactless payment remains the same for all devices. To pay, you need to bring your card or device to the terminal so they "meet" and exchange data. One second and it's done.