Guide to Using NFC on Android for Mobile Payments

1. Introduction to NFC Technology

NFC can come in various forms, such as tags or stickers, and can be embedded in various devices, such as smartcards and mobile phones. In powered devices, the voltage across the terminals of the antenna creates an electric field, and a reader can influence the inductive load determining the current that will flow through the antenna. Two-way communication occurs between the powered device and the reader, meaning that real-time data is transmitted between the reader and the powered device. This two-way communication between the reader and the powered device is due to the fact that a reader and a powered device each have their own NFA (Near Field Antenna). When this link is broken, the HF RFID card, passively powered by the reader, is unable to perform any transaction, or passive transactions are put on hold until the reader is within the boundary range of the powered device. This affects the readers that perform playback, reactivity, or reactivity reflection.

NFC (Near Field Communication) enables connections between devices that are in close proximity to each other, typically less than 10 cm. It operates on the same frequency as HF RFID (13.56 MHz) and is a non-contact IP connectivity that works by simple touch. NFC and HF RFID communicate through electromagnetic induction, and a magnetic field between two looped antennas forms if the active device is connected to an external power source. Data is transmitted through a modulated magnetic field and the modulated field is coupled with a second looped antenna in the passive device.

2. Setting Up NFC for Mobile Payments on Android Devices

Setting up a device in order to have mobile payment capability is fairly easy. If you don't have a device with NFC enabled yet, here are a few of the options. For Android, most of the devices that aren't too old and are considered smartphones are already NFC enabled. The most common way your device can be used for mobile payments is if the device has Android 4.4 Kitkat running. Devices with Android Kitkat (4.4 and above) will have HCE (Host Based Card Emulation) technology embedded and will let you use the Host Card Emulation Feature on your device.

2. Setting Up NFC for Mobile Payments on Android Devices

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NFC technology is one of the more convenient technologies that anyone can use to get things done faster, especially in this modern world where everyone is in a hurry. Whether you're looking for a device to do contactless payments or one that can help make transportation a little bit less of a hassle, having NFC technology on a device is a great option. What could be one of the best examples of what a smartphone can do with an NFC chip is the ability to make mobile payments using your device. In this article, we'll show you how to set up your device so you can make mobile payments using NFC.

3. Security Considerations for NFC Mobile Payments

Applied to Android, to support NFC payments one needs a somewhat more precise threat model. The standard business case usually posits that you have an NFC-enabled SIM. Such a SIM, among other things, is able to store the so-called user's credit-card-credential and to take care of the actual NFC payment transaction. Thus, this form of NFC payment does not involve Android at all; all it does in this context is act as a visualization device for a payment application running on the SIM, inform you as to the amount involved and possibly other details about the payment, and channel the PIN entry/user authentication procedure in some manner. There are special application processors from SCM and others, intended to make third-party applications access the secure storage - but these chips do not interface with Android. As in POS, the actual NFC transaction never touches the general-purpose OS at all; inside the payment security perimeter, the general-purpose OS is Evil.

When the concept of NFC payments first started gaining traction, the mass media seemed bamboozled by the apparent enormity of the security challenge. Especially in early 2011, the popular press was a fair bit concerned with the humble proximity payment device we use today. Nowadays, the same level of concern is mostly reserved for Calypso cards; the rest of the payment world seems to be doing just fine. As for the general security situation of mobile payment systems, one hears much discussion about the potential security horrors. But if we go by what is known to occur in the real world, a very big nothing is happening here. As far as one can tell, mobile payments, NFC or not, are secured as effectively as other proximity payment systems - possibly with a bit of a boost, due to the inherent difficulty of carrying about the payment credential. If the latter part really is a security bonus as intended, or a side effect of getting a business case to be viable, is up for discussion.

4. Popular NFC Payment Apps and Services

Samsung Pay is another popular mobile wallet that has seen its adoption rate do really well, also moving quickly in the last couple of years. That rapid growth has been due in part to the ease and utility of payouts, excellent customer service, and sleek user interface.

Google Pay has integrated the capabilities to not only store your credit and/or debit cards, but also your loyalty cards, gift cards, and transit cards you use every day. Another helpful feature includes the use of Google's account protection, which recognized as providing the best all-around security when it comes to mobile payments. Verizon and T-Mobile in the United States aren't afraid to stand behind Google Pay, as it's pre-installed on the phones they sell. Moreover, you can add metropolitan transit passes by using your camera from inside the Google Pay app as well. The app can be customized by displaying the cards of your choice first.

In trying to sell you on implementing an NFC-based mobile payment point-of-sale solution, let's now look at several popular NFC payment systems that people are happily using every day. You may have heard of these - let's find out which ones are resonating well with consumers.

5. Future Trends and Developments in NFC Technology for Mobile Payments

However, the rapid technical evolution of NFC has posed significant challenges to mobile networks, mainly concerning the issues of privacy and security in utilizing NFC technology. The simplicity and compatibility of NFC with the existing credit card payments network is similar to what we have with other forms of online and offline payments. Therefore, the development of NFC payments to leverage the existing credit card payments network could be compared to that of updating Web 1.0 to Web 2.0. A cluttered market with a variety of different contactless card products was also posited as a challenge to users. Card and billing data are spread across different service providers' TSMs, and card owners and service providers can only directly access their respective credentials. Due to a lack of central authority or standard mechanism for card registration in TSMs, if a user loses their mobile phone, the only way to protect their account information involves two steps of password verification by the TSM and the card issuer's verification of personal information before the user's account is deleted from the personal TSM.

The development of security and privacy solutions within NFC ecosystems should still be a main focus. An increasing number of global payment solution providers, including UnionPay, have prioritized HCE technology, enhancing the universality of NFC applications. However, the NFC market is still restricted by a low level of adoption and the limited number of NFC-supported handsets in the market. According to the Visa representative, limited local support, authentication, the limited number of POS terminals and handsets, and sensitive data storage were the main challenges threatening the security and privacy of an NFC system. NFC will face increasing applications, both in industry and in commerce, by providing switch-like connections that require extremely low power, yet can operate over significant distances.