The Challenges of Contactless Payment Models using Near Field Communication Enabled Devices

The Challenges of Contactless Payment Models using Near Field Communication Enabled Devices

Author by Charles O. Okunbor

Journal/Publisher: International Journal Of Computer Applications Technology And Research

Volume/Edition: 9

Language: English

Pages: 133 - 138

Abstract

The goal of financial institutions is to improve customers experience by making transactions safer, faster, easier, and more convenient. The use of electronics and computing has been a reliable and fast way of achieving these goals. One of such improvement is contactless payment. Contactless payments is the use of mobile phones, electronic cards, and other devices with Near Field Communication(NFC) technology to conduct transactions that do not require a physical connection between the Point of Sales (POS) terminal and the device of the consumer. NFC is the wireless technology that is used to transfer card payment data from the device to the payment terminal via radio waves. Electronic cards has been the most popular means of payment around the world but financial institution want these cards to be emulated by NFC enabled mobile devices which is perceived to be more fashionable, convenient and more secure due to their computing capabilities. Despite the auspiciousfeatures of contactless payment using NFC enabled device, its adoption has been slow due to some challenges associated with their models. Host Card Emulation(HCE) and Secure Element(SE) models for contactless payment on NFC enabled devices were reviewed in this paper and its challenges were highlighted.


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