How to accept NFC payments? Terminal in a smartphone

Modern shoppers expect speed and convenience, and businesses that can provide this gain a competitive advantage. Thanks to NFC technology, entrepreneurs can accept payments in seconds: customers simply hold their smartphone or smartwatch up to the terminal.

In this article, we will look at how NFC works in a smartphone, why this technology is important for business, and what you need to easily start accepting contactless payments.

What is NFC?

NFC, or Near Field Communication, is a method of wireless information exchange between two devices that are no more than 10 cm apart.

The main features of NFC are:

• contactless payments;
• fast transfer of contacts, photos, or other files by touching two devices together;
• use of a smartphone or chip card as an electronic key to enter a hotel, office, or other premises.

A brief history of NFC technology

NFC technology was jointly developed by Sony, Nokia, and Philips, and in 2004 they founded the NFC Forum to standardize it.

In 2006, the first mobile phone with a built-in NFC module appeared — the Nokia 6131. Later, other industry giants, including Google and Apple, joined the development. This ensured the widespread implementation of NFC in modern smartphones and tablets for contactless payments, data exchange, and various additional services.

Using NFC for contactless payments

One of the key areas of NFC technology today is contactless payments. Thanks to it, services such as Apple Pay, Google Pay, Samsung Pay, and other payment systems have emerged, making the payment process much faster and more convenient.

The mechanism is simple: the owner of a smartphone or smartwatch just needs to hold the device up to the payment terminal, and the transaction is completed in a few seconds. At the same time, user data remains secure because the information is transmitted in encrypted form. This minimizes the risk of fraud and increases confidence in contactless payments.

The popularity of NFC payments is growing rapidly, and a large number of retail outlets in Ukraine and around the world have already fully switched to supporting such transactions, making the technology an integral part of the modern payment infrastructure.

Advantages of accepting payments via NFC technology

Accessibility. Most mobile devices are equipped with an NFC module. This means that both buyers and entrepreneurs can use a smartphone instead of a classic POS terminal. For businesses, this reduces equipment costs, and for customers, it makes the purchasing process as simple as possible.

Speed. The average transaction time via NFC is up to 10 seconds. This speed is an advantage for businesses with a large flow of customers, such as supermarkets, fast food outlets, etc. Fast checkout reduces queues and increases customer satisfaction.

Mobility and flexibility. An NFC terminal in a phone allows you to accept payments anywhere: at outdoor events, in delivery services, in taxis, or even at a street fair. Businesses are no longer dependent on stationary cash registers.

Minimal implementation costs. Unlike traditional POS terminals, which require equipment rental or purchase costs, an NFC terminal in a smartphone is an application and does not require additional connection costs. This significantly reduces start-up costs for entrepreneurs.

How to use NFC on your phone for business

Today, entrepreneurs no longer need traditional payment terminals to accept card payments. Thanks to the Tap to Phone technology supported by the Vchasno.Kasa service, all you need is a smartphone with an NFC module. This solution is especially convenient for small and medium-sized businesses, as it does not require additional equipment.

📲 How does Tap to Phone work?

To accept payments, the seller installs the bank’s payment application on their smartphone. The payment process looks like this:

1. The seller enters the purchase amount in the app.
2. The buyer holds their bank card, smartphone, or other NFC-enabled gadget up to the seller’s phone.
3. The transaction is instantly recorded in the app.
4. The buyer receives an electronic receipt by email or SMS.

All you need to get started is an Android smartphone with NFC support. An iOS version of the app is expected soon.

🔗 Integration with Vchasno.Kasa

To organize the full sales cycle, Vchasno.Kasa integrates with the payment apps of Privatbank and A-bank (and later mono) based on Tap to Phone. This allows entrepreneurs to simultaneously use cash register software and accept contactless payments on their smartphones.

During the transaction, the Vchasno.Kasa app automatically launches the payment app. The customer makes the payment, and the card details are transferred to the fiscal receipt in accordance with the requirements of the tax service. Thus, the business receives a legal and fully automated accounting process.

To start accepting payments via NFC, simply sign up for the “Vchasno.Kasa” service, add your digital signature key or electronic signature, and create a cash register (or import an existing one). New users can try Vchasno.Kasa for free for 30 days. This is a convenient way to evaluate the service in action before choosing a plan.

Security when paying via NFC

Security is key for any financial transaction. In the case of NFC, there are several important aspects to consider:

• Short range. The signal only works at a distance of a few centimeters, which makes it much more difficult to intercept data.
• Tokenization. A unique one-time code is generated for each payment, so even if it is read, it cannot be reused.
• User authentication. Payments on smartphones are additionally protected by a PIN code, fingerprint, or Face ID.
• Bank control. All transactions are monitored, and in case of suspicious transactions, the bank may request confirmation or block the payment.

Despite the high level of protection, entrepreneurs and customers are advised to follow basic rules: do not leave your phone unattended, regularly update your operating system, and use official payment apps.