Vendors worry NFC will hurt value of online payments

While this blog has recently examined the benefits of mobile devices in B2B payments, some organizations think they could have a negative effect on the industry, particularly in the eCommerce realm.

Online payments have been successful in a mobile environment, but with the proliferation of near field communication (NFC) in a number of devices, many organizations are afraid that eCommerce shopping will be going away. Using NFC to tap devices and transfer funds is a convenient method of making payments, a feature vendors can enjoy in both the B2B and B2C sectors.

"The technology behind NFC allows a device, known as a reader, interrogator, or active device, to create a radio frequency current that communicates with another NFC compatible device or a small NFC tag holding the information the reader wants," wrote Ed Liston, a contributor with the online publication Seeking Alpha, in a recent article.

However, despite the popularity of NFC - which some have even questioned after Apple failed to include it on the latest iPhone - eCommerce should not be going away. Vendors are enjoying the benefits of growing their client base on a national and global scale, something that is only possible with the help of online shopping. A software vendor in Boston can sell to a business in Phoenix over the internet and accept the payment from across the country. Using NFC to complete this transaction would be exceptionally difficult.

However, that shouldn't discourage vendors from accepting NFC payments from local customers. But like everything else, vendors must acquire the right payment solutions to let them process level 3 data with line item detail. Ultimately, regardless of the payment method, vendors selling to companies must ensure they can process payments in a way that reduces processing fees and promotes profitability. 

by Ty Hardison

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