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The outbreak of COVID-19 and the acceleration of digital media platforms have brought a significant change in the payments industry. In earlier times, the customers had to swipe and enter the card details to process the transaction. However, with a simple tap to pay technology, it has become easier for businesses to offer a seamless experience to their customers and limit the amount of physical contact. NFC and Tap to Pay transactions are equipped with a technology that makes it easier to conduct contactless transactions. There is no need for the customer to enter the card details or swipe the card.
The NFC technology enables the devices to exchange data when they are brought in close proximity. Not all merchants have adopted this technology and are often concerned about the frauds in the contactless payments industry. The customers are also concerned if their details will be leaked or stored when they tap their cards or proceed with NFC transactions.
One should be aware that NFC technology comes with a range of security features that help prevent financial fraud. Here, we have outlined some of the features that make this payment medium more secure.
1. Proximity protection
NFC and contactless payments work over incredibly short distances. An individual will have to stand around four centimeters away to potentially steal information and sensitive data. In most cases, it is not possible and can make it uncomfortable for the store owner. Therefore, proximity protection is one of the first level security measures adopted with this technology.
2. Payments initiated by the users
Most NFC payment applications are equipped with stronger layers of security protection. They would ideally ask for fingerprint scanning or two-factor authentication in order to process the payments. It can be inferred that the transactions will be validated only after the user approves them. Therefore, this helps in preventing fraudulent activities even when a thief is standing in closer proximity.
3. Theft issuesn
With the prevalence of NFC mobile payment apps, many merchant owners are adopting the technology to offer convenient services to their customers. However, it is necessary for the merchants to take a strong stance on mobile security measures. Without proper measures, the data can be lost. The issues of smartphone theft and loss are quite common. Therefore, it is necessary for the merchants to take strong measures and keep their phones protected.
4. Secure payment app
Merchants should ensure that the app they are using is PCI compliant and follows all the latest industry guidelines. Choosing a secure and authenticated app is necessary and will protect you from all fraudulent activities.
These types of security attacks are a little difficult to carry out and we can say that NFC transactions are more secure than traditional methods. However, it is necessary for the merchants to take proactive measures and make their NFC devices more secure.
