Seems like the era of “I forgot my wallet” is coming to an end, as your current smartphone now competes face-to-face with credit cards and cash payments. That’s right, currently there’s more than a handful of financial institutions that have started implementing NFC technology in their apps to be able to use our cellphones as a digital wallet.
Near Field Communication
How is it possible that my cellphone will replace cash or credit cards?
Very simple. Thanks to NFC (Near Field Communication) technology created more than 10 years ago, with just placing your phone close to a POS (Point-of-Sale Terminal) it can establish a connection with the banks that offer it as a form of payment.
This kind of technology is directed towards people between their 20s and 40s, whose income fluctuates between $10,000 and $15,000 every month. It has diverse applications that allow you to use it at the movie theater, grocery store or to purchase tickets to a concert or soccer game.
A worldwide trend
In every part of the world there’s always some fear that your credit card will be cloned. This is probably one of the causes for an increase in the tendency for using cellphone payments.
In Spain, for example, 3 billion transactions were performed with POS last year, with a final number of 124,406 euro moved through this technology achieving, for the first time, a higher amount than that withdrawn from ATMs.
On the other side of the world in Mexico, there are currently four banks offering this service to their clients: Citibanamex, BBVA Bancomer, Banorte/IXE and BanBajío.
How are things in Mexico?
In our country, this technology started turning heads around 2013. By this time, there were around 420,000 bank terminals registered in the country, which made the idea of switching to POS somewhat of a hassle.
NFC technology entered the market formally just last year, and even if adoption has been slow so far, it has presented some unforeseen issues like compatibility with the different OS in cellphones. Android allows the implementation of NFC in only a handful of models, while Apple has been slower still, restricting the use of NFC chips already included in models like the iPhone 7 and 7 Plus.
After the Mexican Association of Banks established a technical and operative document so its associates could interoperate and read credit cards with NFC technology, it is expected that more banks will adopt this growing trend.
The evolution of payment
Without a doubt, NFC technology represents a big step forward in the way we manage our money. For many it means a simpler and safer way of making transactions, while others consider it a necessary part of their lives.
What we know is that the world keeps evolving, not only in a financial way, but also in technology and culture. This technology will grow stronger when security conditions guarantee the users’ tranquility and when countries like Mexico adopt production and training in new technologies.
After all, even the way we pay evolves.
If you’re still carrying coins in your wallet ‘’just in case’’, maybe it’s time to share this article and enter the modern age.
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