This blog post is about proximity payments technology. It hopes to answer questions about why these technologies are superior to money and plastic and why stores and places of commerce should switch to honoring them.  To be sure, it can save an institution time and money if it switches to these kinds of transactions.  For the more people who are learning about smart phones begins to trust these types of technologies, the more the demand will increase for these kinds of transactions. 

What is Proximity Payments Technology?

According to Mobile Payments Today, proximity payments technology refers to a method of payment that entails the use of a smart phone and an internal chip.  The smart phone application allows the phone to secure a customer's amountinformation, which enables it to transfer to the merchant as money.  Itreplaces cash, debit or credit cards.

Why the Need for These?

For a long period of time, consumers have worried about identity theft. In more cases, banks and credit card companies are incorporating the use of microchips, which protect against those who wish to steal identities, information, and money from the unsuspecting merchant. Thus to keep up with your customers' concerns, switching to this technology is a perfect idea.  It is not cheap, but it will pay dividends in the long run as your customer base increases.

Prediction

The Beaconstac website cites a study that suggests that transaction value of proximity payments technology should triple by the end of 2016 due to an increased amount of acceptance by merchants, and the increasing number of consumers buying smartphones and learning their capabilities.  Thus more people will be more likely to make medium-sized and large purchases on their smart phones.

NFC and BLE: Two of the Most Popular Technologies

Of all of the proximity payment technologies, two stand out--the Near Field Communications (NFC) and the BLE.  While both platforms allow peer-to-peer transactions to take place, there are key differences in how they work.  The BLE, for example, is capable of communicating with devices within 70 meters, while the NFC works best when the devices are four centimeters apart or less.  The BLE is more popular for some people because it allows the consumer to pay for his or her products without the use of a store associate, whereas the NFC does require the use of an employee to take the data.  For the customer who is in a hurry, the NFC will not do him much good, for he has to wait in long lines for a cashier who is free.

If you are thinking of switching to proximity payments and technology, a good suggestion would be to buy dual-mode terminals types from us, and train your employees how to use the equipment.  For more information on our payment terminals, contact us.