1. Running head: NFC: REVOLUTIONIZING THE PAYMENT PROCESS 1
NFC: Revolutionizing the Payment Process
Anthony Gray
Writing Assignment #3
Editorial Review
Due Date: Friday, April 3rd, 2015

2. NFC: REVOLUTIONIZING THE PAYMENT 2
Abstract
Near field communication technology is a wireless technology, allowing two devices to
communicate when in close proximity. The technology has given rise to the digital wallet which
is a virtual wallet anyone can have on their phone. This enables a person to store payment
information in their digital wallet, negating the need to carry a physical payment method. Apple
and Google are the main two companies offering digital wallets using near field communication
technology. Apple Pay and Google Wallet are competing head to head for contactless payment
users. Near field communication may benefit people in other ways, including making life easier
at home. The healthcare industry may also benefit from near field communication.

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NFC: Revolutionizing the Payment Process
Near Field Communication (NFC) is a wireless transmission technology recently
developed for mobile phones to facilitate mobile commerce (m-commerce). Newer phones come
with a NFC tag already installed. To use the technology, a business places a NFC tag in the
payment device used at checkout. By touching their NFC enabled smartphone to the payment
device and confirming their purchase, a customer’s transaction is completed without cash or a
credit/debit card (Haag & Cummings, 2013). NFC is revolutionizing the payment process by
only requiring shoppers to use their phones to make purchases, leaving their wallets and purses at
home. Blue tooth technology already allows two devices (in proximity of 20 meters or less) to
communicate with each other, whereas NFC technology requires proximity to be within one
inch. Also, NFC allows communication using a fraction of the power required by blue tooth,
connects much faster than blue tooth (Profis, 2014), and uses encrypted channels to send and
receive data for better security (Near Field Communication, 2015). Apple and Google are two
companies that have implemented digital wallets featuring NFC to make paying for goods easier.
Apple Pay and Google Wallet are catching on very quickly with buyers as more sellers
implement NFC devices into their existing payment systems. NFC may revolutionize other
industries as it is doing with how individuals pay for products.
Digital Wallets
Apple Pay
Apple leads the way with their digital wallet called Apple Pay. Chief Executive Officer
Tim Cook stated two out of every three dollars spent using contactless payment systems are
through Apple Pay (Snyder, 2015). With a 66% market share in this space, Apple Pay is gaining
in popularity. Apple Pay is easy to use, but not yet available for every customer. An iPhone 6 or

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6Plus is required. The customer’s bank also has to be one of the many banks that allow Apple’s
service to be used. A person with an iPhone 6 and a bank listed at www.macworld.com, simply
enters their debit/credit card information in the phone’s settings tab. Once the payment
information is entered, the person is ready to shop. A list of retailers using Apple Pay is
available through the previous web address. To check out, the customer touches the phone to the
pay pad and, when prompted, scans their fingerprint on the fingerprint scanner already on the
phone and the transaction is completed in a single stroke (Yamshon, 2015). Apple, thus far, is
the only big player in the digital wallet market but Google is ready to join them.
Google Wallet
Google’s digital wallet is very much the same as Apple Pay. The customer enters the
payment information in a smartphone and shops at places accepting Google Wallet. Google’s
main obstacle was getting their application installed on phones. Apple manufactures its own
phone and could install Apple Pay before the phone even went to market. However, Google uses
companies like Samsung and Nokia to build phones for use with Google’s Android software. To
complicate matters further, mobile carriers AT&T, Verizon, and T-Mobile developed their own
version of a digital wallet in a joint venture called Softcard. Softcard was preinstalled by phone
makers, leaving the customer unaware of Google as an alternative. For these reasons, Google
had trouble getting their wallet into the hands of buyers. To solve this problem, Google has
acquired Softcard and reached a deal with the aforementioned carriers to have Google Wallet
preinstalled on all Android phones that are sold. Because of their deal with Softcard, Google
Wallet is now poised to compete with Apple Pay (Snyder, 2015). Only time will tell if Google
will take market share away from Apple in the contactless payment sphere.
Future of NFC

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NFC has certainly helped make paying for products quicker and more efficient.
Additionally, there are many other ways it can make our daily lives better. For instance, there is
a company called Lockitron. They sell a door lock that gives Android users the ability to
program their phone to unlock doors to their home by simply swiping their phone near the lock.
Individuals can also buy NFC Tags and program them to help with daily chores. By placing a
tag on a washer, a phone swipe could activate a wash cycle timer on the phone (Profis, 2012).
One industry that potentially could benefit from NFC is the healthcare industry. Healthcare costs
continue to rise but, with better information technology, costs might be lowered. Using NFC
enabled smartphones, healthcare workers could better track patients between doctors and the
materials used to help them. The human error associated with data entry would also be lessened
by NFC technology (Marcus, et al., 2009). As NFC plays a larger role in people’s lives,
certainly more creative ways to use the technology will emerge, creating the next wave of new
technology companies
Conclusion
The use of digital wallets will be pervasive in our society. The ease of use and better
security makes digital wallets more attractive than the alternative of a physical payment method.
NFC has been around for a while but, until now, the applications were not available. The digital
wallet may launch NFC mainstream, but NFC will permeate further in people’s lives. People in
New York already use smartphones enabled with NFC to pay for bus and taxi fares (Louis,
2013). Movie theaters and concert promoters are implementing NFC technology to replace
antiquated paper tickets. Airlines are jumping on board as well, with smartphone ticketing. A
person’s phone could potentially store not only their boarding pass, but their passport, car rental

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confirmation, and hotel confirmation. Thanks to NFC, all of this could be accomplished with a
phone swipe and confirmation.

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References
Haag S., & Cummings, M. (2013). Management information systems for the information age.
(9th ed.). New York, NY: McGraw-Hill Irwin
Louis, T. (2013, May). Are nfc payments dead? Forbes.com Retrieved from www.forbes.com
Marcus, A., Davidzon, G., Law, D., Verma, N., Fletcher, R., & Khan, A. (2009) Using NFC
enabled phones for public health in developing countries. Retrieved from
http://web.media.mit.edu/~lfgs/papers/nfc09-mit-ird.pdf
Near Field Communication. (2015). About NFC. Retrieved from
www.nearfieldcommunication.org
Profis S. (2014, May). Everything you need to know about NFC and mobile payments.
Retrieved from www.cnet.com
Profis, S. (2012, July). The most practical, creative ways to use NFC with your Android device.
Retrieved from www.cnet.com
Snyder, J. (2015, February). Google wallet is now poised to compete with Apple Pay after its
deal with Softcard. Wired.com Retrieved from www.wired.com
Yamshon, L. (2015, March). The ultimate guide to how and where to use Apple Pay. Retrieved
from www.macworld.com

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