What is Near Field Communication NFC:
  • NFC allows a mobile device to exchange data with another enabled device. Specific to mobile payments, customers will typically use their smartphone to communicate with the NFC-compatible terminals in order to make a payment. Large retailers already have NFC-compatible equipment in place, but this technology has yet to be widely adopted.

How does Apple Pay and Google Wallet utilize NFC:
  • Apple Pay and Google Wallet use an NFC antenna in its mobile devices to bring contactless payment technology to the masses, through big box retailers like Bloomingdale’s, McDonald’s, and Walgreens.

Here’s how Apple Pay works: 
  • Customers register their credit card(s) through Passbook.
  • At the time of payment, customer holds their iPhone 6, iPhone 6 Plus, or Apple Watch to the merchant’s NFC-compatible terminal.
  • The two devices communicate with each other to handle payment.