NFC or QR payment? The endless debate
ฝัง
- เผยแพร่เมื่อ 9 พ.ค. 2021
- With the rising demand for contactless payments, QR codes and NFC tags are the most debated and discussed subjects. So we decided to breakdown the pros and cons of the two payment methods💸👇
This video covers:
📲 The top use cases for NFC and QR codes
🔎 QR payments regulation in Europe
📈The surge of QR payments in China and India
And more!🔥
Do you think that QR payments will ever become mainstream in Europe? Or will they continue to be an addition to NFC payments? *Comment down below!*💬
#Payments #QRCodes #NFC
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Transcription:
Rising demand for contactless payments has led businesses to search for the best solution. And with that, one that fulfills customers’ need for convenience and security. QR codes and NFC tags are the most debated and discussed subjects in this regard. So who is the winner when it comes to your mobile wallet?
In the earliest stages of mobile payments, there was much debate over whether to focus on using QR codes or to wait for more smartphones to support NFC. The biggest concern was betting on the wrong horse.
So we decided to take a deep dive into the two options of mobile payments.
The Most Prevalent Use Cases of NFC Payments
NFC is mostly used for point of sale terminal based purchases, from retail to vending and accessing public transport. Thanks to the innovation of banks and trust in ApplePay and GooglePay, mobile contactless payments have taken over card payments.
NFC payments are very convenient, but as with everything, they have a few shortcomings.
Disadvantages of NFC Payments
Merchants need NFC enabled payment terminals which present a high investment cost. In addition, it also has many requirements from the consumer before they can make a payment, this includes having an NFC supported smartphone and downloading a digital wallet app such as Apple Pay or Samsung Pay
Luckily for merchants though, the new development of SoftPOS will enable micro merchants to accept NFC payments via a secure smartphone application. This will take away the barrier of the classical POS terminal costs.
Additionally, in Europe and many other regions, there is a daily limit after which manually entering the pincode is required, which somewhat defeats the purpose of a contactless payment.
The Most Prevalent Use Cases of NFC
On the other hand, QR code payments have also proven to be very valuable. It is increasingly being used in Europe for closed-loop solutions, including loyalty programs, such as scanning a membership card to access exclusive deals and perks.
While they are used to complement NFC payments in Europe, QR code payments are definitely the more dominating method in the Chinese contactless payment market.
85% of Chinese consumers used QR codes to make a payment in 2020.
QR codes are also picking up pace in India, which is most likely due to the low cost and low entry barriers it presents. As a merchant one would simply need a phone with internet connection and they’re good to go.
The rise of QR was certainly unanticipated by many experts. Especially when considering that QR payments were simply introduced as a bridging technology to mobile payments, yet it has never disappeared and attracted millions of consumers!
Disadvantages of QR Codes For Payments
The biggest concern associated with this payment method is security issues. QR codes can be misused for phishing and hacking. This requires both merchants and consumers to be extra vigilant when generating and scanning a QR code.
Another shortcoming of QR codes is that they require a stable internet connection and some tech knowledge from the consumer. Any error can cause frustration.
Unlike NFC payments, the lack of regulation on QR code payments in Europe certainly can decrease trust.
The Verdict
Having analyzed the use cases and security of NFC and QR payments, it becomes clear that despite its high investment cost, NFC will continue to be the most favourable payment method across Europe. QR codes will also continue to be complementary in closed loops as an addition to the widespread NFC payment system.
That being said, the common advantage of both methods is that they are capable of supporting an omnichannel experience. QR code technology is being embraced by the card schemes standardization company EMVco as well.
I was a tourist who just got back from the U.S recently. Their NFC-based payment environment was a freaking hassle. This was mainly because i had no US bank account. Still, it was really annoying as some stores that i went to doesn’t really accept cash anymore. At least with QR, with applications like Alipay/WeChat (or in my country we have GoPay & QRiS) acting as the substitutes to banks, simplifies the heck out of everything, where you can easily sign up using your ID/Passport number & feels really convenient.
NFC has SE (secure element), its a extra hardware encryption layer, making it almost unhackable, that makes it the best option to bet on, as you said, QR codes can be manipulated. done right, the user doesnt even have to open apps, NFC is just tap to pay, its waiting for more biometrics like touchID on smartwatches, so no more pin has to enter. which can be fiddly on small screens.
Ninja please ! An NFC enabled credit card is a disaster in disguise.
Excellent roundup, thank you. There is definitley a use for QR code payments in fundrasising if its not held by organisations who charge for it.
Just home from Thailand and had this conversation with other tourists. Thailand, Ind I a and many other HIGH POPULATION countries use QR codes. Small businesses in Thailand all use QR codes.
Developing countries use QR code. Rich countries use contactless card & NFC
In countries where most people have bank accounts, imo, there is little need for QR code payments, which is why NFC is now dominant in Europe, North America and developed Asin countries like Japan and Singapore. It is no coincidence that QR code apps are more dominant in countries where a higher proportion of people are unbanked, and this includes China, where Alipay and WeChat have become alternatives to banks.
However, In China, all of the people using wechat or alipay nearly bind at least a bank account to their wechat or alipay account, because you have to despoit or withdraw your money in it.
Bank in every country for everyone is necessary for now.
The biggest problem of nfc payments is the spread of nfc devices in undeveloped areas i believe.
Wtf are you saying bro😂😂... You can't use QR code apps without adding bank account. We pay money from bank account through these apps. NFC is useless compared to QR code
@@NS-jj6qr in my country you can use qr payment without having bank via Go pay or ovo
Q R Code can be copied and printed for more than one outlets. as it is for receipt of payment only.
QR Code is primarily for UPI,,,, However can be used for wallet and other payments based on QR Code.
NFC is for payments when Internet is over crowded or there is no internet. It is for wallet to wallet only and not for UPI.. NFC has
very low cash transfer limit. Like Metro charge. It does not reflect in bank account of receiver unless set brought in live Internet location.
in India I use NFC payment cred tap and pay when I get to use pos itherwise qr code pay is very widely accepted everywhere from big and small businesses..
QR is not secure remains to be validated. That argument is weak. Merchants are the key here and low cost wins. Hence NFC is inferior
Oohhhh told ya
QR codes are app driven, the NFC are POS driven … now the consumers chooses ( and looks like NFC is a winner here ) .
You know what you need a better camera and microphone
solution
Sound is bad. Background noise in the video and your speaking is often muttered.
Nfc won, qr zero security
Depends on the country. In Malaysia, we only have one single standardized DuitNow QR by our central bank.
Stop