Paying with NFC: How does it work?

Paying with your phone (Smartphone)

Paying with your phone (smartphone) or watch (smartwatch) is an easy and efficient way to spend money. This is made possible through the use of near-field-communication (NFC) technology. NFC allows you to make payments quickly and easily by holding your phone against a payment terminal. This causes your phone to communicate with the terminal and send payment information to the merchant.

There are many different ways to pay with your phone, depending on the type of phone you have and the app you use. Many phones have in-built NFC features that allow you to pay, while others require special payment apps. In addition, you can also pay through mobile banking apps, digital wallets and other payment platforms.

The big advantage of paying with your smartphone is that you no longer have to wait until you get home to make online payments, or spend money at a payment terminal in a store. You also don't have to carry physical cash or bank cards, making it easier to pay on-the-go. In addition, there are plenty of security features available, such as biometric authentication and secure connections, which ensure that paying with your phone is safe.

In summary, paying with your phone is a smart and modern way to spend money. It is fast, easy and available on many different platforms, and offers a host of advantages over traditional payment methods.

NFC and payment

Paying with NFC is also known as contactless payment. This means you pay automatically as soon as you hold a debit card or phone against an ATM. This removes a barrier for consumers. The act of paying has become simpler, making payments faster. As a result, queues are less likely to occur. On top of that, one also no longer needs to carry a wallet for small purchases. For amounts under €25 you do not need to enter a PIN. Once you are above that then a PIN is required. It may seem that for amounts under €25 there is no security on the phone, but nothing could be further from the truth. Before you pay with your phone you need to unlock the device. This can be done with a fingerprint, access code or Face ID. If you pay more than €50, the PIN must be entered at the ATM. There is an overall limit of €250 per day.

To pay with NFC, you must meet certain conditions. The device must be equipped with an NFC chip. In addition, the software must also be up-to-date. And, of course, you need a mobile banking application and a checking account at a bank. Nowadays, contactless payments are accepted almost everywhere. This will only increase in the future.

How does paying with NFC work?

Inside the ATM is an NFC chip. This chip can communicate with other NFC chips, such as the one in your phone or bank card. The NFC tag in the ATM sends out a certain task via radio waves. You can then capture these waves with the antenna of the NFC tag in your phone. Certain tasks can be sent along with these radio waves. The task is captured and can be performed directly on the device. The radio waves can only bridge a maximum of 10 centimeters. Thanks to the limited distance, the technology is very suitable for payments.

How can I pay with NFC?

Do you have an iPhone? Then you need to use Apple Pay. You can activate this by going to your bank's application. Then look for Apple Pay in the settings. Then you need to choose a debit card and link the bank application with the Apple Pay application. To do this, go to the Apple Pay application and choose "add card. Enter your name and card number and accept the terms and conditions. Click 'done' and the card is linked. Then you can easily pay by pressing the home button twice and holding the device against the ATM. Or use Face ID. Put your finger on the home button and hold the iPhone against the ATM.

Do you have an Android device? Here too you need to activate a debit card. You do this by going to the bank application. Then search for mobile pass or debit card in the settings. The name may vary from one bank to another. Add a mobile card and accept the terms and conditions. Choose a PIN and you are ready to pay with your cell phone.

With a device running on Android, you have the option of turning the NFC function on or off. Once the NFC feature is turned off, it is not possible to pay using NFC. You can easily turn on NFC by unlocking the phone, swiping up and then clicking on NFC. With Apple, the NFC chip is always enabled. It is not possible to disable NFC on an Apple device.

The benefits of paying with NFC

• Payment is much faster, this makes it easier for both the consumer and the seller.
• Payment queues are less likely to occur. The vendor can sell more thanks to shorter queues.
• Forgot your wallet? No problem! You can just pay with your phone
• Lower transaction costs because transaction speed is faster
• The PIN cannot be checked off