Security-conscious customers wary of potential NFC security issues; companies seek mobile purchasing alternatives
April 22, 2013

The rise of mobile payment processing has been shifting toward a cashless landscape in recent years. But NFC, or near field communication, has raised data security concerns among companies and consumers and many commerce experts believe the technology may soon loose favor. Alternative mobile payment processing software offers small and mid-sized businesses the opportunity to alleviate customer concerns over financial information theft while still integrating the purchasing method into other plastic processing software platforms.

NFC losing support among mobile manufacturers and consumers
One of the biggest hurdles in mobile payment processing software is support among customers. Many consumers do not understand the differences between NFC and other mobile purchasing software, leading to confusion about the payment method. Customers who have NFC on their phones may not even know it or may feel uneasy about putting their financial information on their mobile device. Data security is the main issue for customers who do not feel comfortable with the purchasing platform, as many clients see the transference of data through electronic devices as an easy way for strangers to take their financial information.

Mobile phones with NFC are able to simply touch or be within a close proximity to each other to transfer for data. This presents security concerns, as hackers may gain access to financial data without being in the vicinity. Research by Google's G+ found nearly one in five cell phones will have NFC technology by the end of the year and mobile commerce will exceed $670 billion by 2015.

Although the technology is advancing to try to relieve security concerns, some of the largest mobile manufacturers are beginning to decrease the number of phones with NFC technology. However, many mobile payment processing software brands rely on NFC and the current mobile infrastructure that is based on the technology may start to look for alternatives.

Many look for alternative mobile purchasing technology 
As NFC comes under scrutiny among consumers and businesses, organizations looking to increase sales through mobile commerce can find alternatives to the software. For example, Sage Mobile Payments provides purchasing security by allowing end-to-end encryption of a customer's financial data. Until NFC evolves and consumer support emerges, more mobile makers and software companies may look into alternatives to the technology and NFC may fall into extinction.

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