NFC Technology for a Cashless Society
A Digital Wallet for Smarter Spending
The smartphone conveniently combines a plethora of daily tools, from calendars to cameras, into one hand-held device. In the past five years, many new and established tech companies have been investing in developing tools to include digital wallet features onto the ever expanding list of smartphone capabilities.
The invention of credit cards revolutionized our consumer habits with lighter and more organized wallets. But many local services that we interact with daily, such as food deliveries, babysitters, gardeners, and millions of small businesses cannot afford to lug around expensive, and hefty, POS machines.
However, new mobile payment technologies offer the perfect solution: a small sized card reader that eliminates the need to carry around cash. By allowing credit card transactions to be performed between any two individuals using a smartphone or tablet, transactions can be done easier...and faster.
The Rise of the Mobile Payment Market
A recent CNN study shows that many leading countries have already evolved into a cashless society, relying mostly on credit cards, mobile payments, and digital cash to eliminate the need to carry heavy coins and crumpled up bills in their pockets.
Square, the start-up company credited for inventing the mobile card-reader concept, is currently processing transactions at the rate of $6 billion through their affordable card reader. The Square system, which attaches to a smartphone or tablet, has brought easy payment accessibility and mobility to over two million small merchant businesses.
In addition to offering credit card transactions, mobile payment technologies also capture and store customer data during each transaction; this helps to automate optimized inventory management, secure invoicing and sales analytics for the business.
Major credit card companies such as Visa and Mastercard are backing mobile payment start-ups with the prediction that this new technology will greatly expand the credit card market. Soon after the success of Square, established companies such as PayPal, Apple, Amazon, and Groupon have entered the digital payment technologies market by developing their own version of a mobile payment technology.
Electronic Components for the Next Generation of Mobile Payments.
The first mobile card reader relied on the Hall Effect that produced potential differences across a conductor or semiconductor created by the magstripe on a credit card. In later developments, chip card, or EMV, became a new additional standard; featuring an encrypted microchip for higher security.
When Apple entered the market, however, it utilized NFC or near-field communication technology. Built directly into mobile devices, NFC that allows radio communication between card readers and smartphones with a simple tap. This added a layer of convenience eliminates the physical wallet from the payment game altogether; a move that is necessary to truly move us into a cashless society.
As NFC continues its upward trend in the mobile payment market, Panasonic will continue to be an integral parts supplier for the industry. NFC chips and modules are at the forefront of our offering for this market, alongside other components such as resistors, diodes, and capacitors, and batteries. Quality components will determine the reliability, convenience, and durability of future mobile card readers and payment terminals; as they become our daily transaction method of choice over cash in the near future.
To learn more about Panasonic's NFC Tags, click here.