NFC, Mobile POS, and Closed Loop Mobile Payments

     NFC, Mobile POS, and Closed Loop Mobile Payments

NFC or Near Field Communications

NFC stands for Near Field Communications. It allows customers today to combine two worlds together. Mobile payment is paying through texting, a form of NFC.  An advantage is that mobile payments allow you to make transactions for products and services without being physically present. Another advantage is that contactless payments allow you to make transactions without having to actually touch anything. A device that uses radio frequency identification can be used to make a payment. It is quick and easy to do, and NFC combines the two features into one. NFC allows customers to make quick and easy payments on their smartphones. It gives customers the option to no longer swipe or text each time they make a payment and works with many different companies to allow customers to do this anywhere. There are some disadvantages such as limited touch-to-pay terminals (this is on the rise), not all credit card companies offer NFC payments, is not available with every mobile carrier, and you have to have a separate SIM card to enable this feature and if your phone is lost/stolen it is possible for someone to hack your credit card numbers.

 

 

 

Mobile POS or Mobile Point of Sale

Mobile Point of Sale, or Mobile POS, has been around for a long time. The first POS system, the cash register, was introduced in the 1870’s but it took until 1990's to go mobile. This new technology has changed how payments can be made. It is now faster and quicker than ever before. Mobile POS was first used in the restaurant industry. This allows waiters and waitresses to accept their customers’ payments at their table. Mobile POS enables the restaurant staff to make fewer  mistakes and to fix them quicker since they no longer have to run all the way back to the kitchen. Retailers like Apple have incorporated mobile POS devices in their stores to eliminate the use of cash registers. All transactions are made through mobile devices. Customers can use Mobile POS to check reservations and make payments on the spot. For example, Mobile POS allows people who sell at flea markets to accept credit cards without the hassle of bringing a credit card machine with them. This benefits the customers, allowing them to spend more and buy the things they want. Mobile POS has benefited both the customers and the sellers.

 

 

Closed Loop Mobile 

Closed Loop Mobile creates a new shopping experience for its customers. The main form of transaction for the Closed Loop Payment is through mobile devices like smartphones. This is important due to the fact that smartphones are currently highly in demand.  Some advantages of Closed Loop Mobile are that it allows places to offer more rewards, it allows merchants to take ownership of their customers more than ever since it helps eliminate the middle man, and there are benefits for both sides. Businesses can now make more money since they no longer have to pay the middle man. This results in allowing the customers to have fewer problems with payment transactions. Closed Loop Mobile helps benefit those who matter the most–the merchants and the customers. The future of “ease-shopping” is here!

 

 

 

 

      Sources: 

 NFC, . N.p.. Web. 21 Sep 2013. http://www.nearfieldcommunication.org/payment-systems.html

 

Kelly, John. N.p.. Web. 21 Sep 2013.  http://computer.howstuffworks.com/point-of-sale-mobile.html

 Didaskalou, Athan, and James Duthie. "Our thinking."CLOSED VS OPEN: A DEBATE ON THE FUTURE OF MOBILE PAYMENTS. N.p.. Web. 21 Sep 2013. http://dtdigital.com.au/our-thinking/post/closed-vs-open-a-debate-on-the-future-of-460 .

Group, Mercator Advisory. "Mercator Advisory Group."Mobile Opportunities for Closed-Loop Issuers. N.p.. Web. 21 Sep 2013. http://www.mercatoradvisorygroup.com/index.php?doc=Prepaid&action=view_item&id=769&catid=16 .