You might not have heard much about NFC (Near Field Communication), but you are probably aware of the services it offers. NFC is the technology that enables customers to make payments using apps installed in their smartphones or transfer media files such as photo albums, videos, and playlists.
Near-field communication is assisting mobile wallet companies in changing the landscape of the traditional payment world. In the United States, plastic payment cards are slowly being replaced with better alternatives. Let’s take a look at some current developments:
- The global market for unbanked mobile payments is forecasted to reach a value of USD 421 billion by 2026
- A 2019 report revealed that 66% of consumers in the U.S. believed that payment cards would be replaced with smartphones within the next five years
- The NFC market is projected to reach a value of USD 34.9 billion by 2025, up from USD 18 billion in 2020.
Given these statistics, an increasing number of businesses are investing in NFC verification solutions in an attempt to stay up-to-date with changing trends, enhance security systems, and build better rapport with customers.
Listed below are the top four advantages of adopting NFC verification solutions:
Enhanced User Experience
For enterprises to sustain customers and keep up with a highly competitive market, enhancing customer experiences is regarded as a primary priority. With the help of NFC verification services, businesses can equip themselves with rapid, convenient, and secure methods of verifying identities.
From the customer’s side, all that is required is to scan their identity documents that are embedded with a microchip against an NFC-enabled device. The chip contains authentic personal details of the holder. Within a few seconds, the end-user is verified and can continue carrying out their transactions in a friction-free manner.
Customer Acquisition and Retention
Establishing a fraud-free customer base is much more difficult when the business is using conventional methods of verification, as these methods are prone to human error and criminals using advanced schemes can be onboarded.
On the other hand, NFC verification solutions allow banks to streamline the process of identity authentication prior to the customer onboarding process. This is done by simply tapping an ID document against an NFC reader. In this way, organizations can increase legitimate customer acquisition rates without compromising on their experience or global regulations that impose fines on organizations involved in fraudulent activities.
Customers today expect maximum levels of convenience from businesses. In most situations, they are attracted to companies that offer the fastest, easiest, and highly secure services. NFC verification solutions offer all of these advantages, as it only requires users to hold up their smartphones.
What is that one item that you hold of at all times? A smartphone for sure. Therefore, it is no wonder why NFC-enabled smartphones are rising in popularity. For those that still prefer to use credit/debit cards for making payments, however, the same convenience is offered to them too as NFC identification is completed in mere seconds.
Building trust between businesses and customers depends on the provision of secure transmission of transactions. The word “near” in NFC is representative of the high level of security that is offered through NFC-based verification solutions. A customer’s identity is only verified through documents that are brought in close proximity to the NFC reader. Unlike a Wi-Fi connection, NFC verification solutions cannot be hacked since the data is transferred through secure electromagnetic signals.
In addition to verifying ID documents through microchips, NFC identification solutions can also be used in combination with biometric technology to made payments more secure and verification results more credible. Such additional layers of security are added on top of already existing security systems to help in fraud mitigation. Examples of crimes that can be detected and eliminated through NFC biometric verification solutions include:
- Identity theft
- Account takeovers
- Submission of counterfeit documents
- Forged or modified ID cards and bank statements
- Insurance fraud
- Card-Not-Present (CNP) fraud
- Medical frauds
- Tax evasion through false financial statements
- The global market for NFC technology is on the rise
- With the help of NFC verification solutions, businesses can equip themselves with rapid, convenient, and secure methods of verifying identities
- The strength of NFC verification lies in its ability to offer enhanced user experiences, better customer acquisition rates, convenience and ease of use, and enhanced security systems.