NFC Verification is on the Rise: How Can Your Business Benefit?
Whether you’re a business that sells online products, operates in the tourism or banking industry, or offers identity verification services, you need an efficient and reliable digital solution. NFC – Near Field Communication – technology is quickly gaining prominence in the corporate sector with its ability to enable contactless transactions and offer customer verification. Most enterprises are rather unaware of the benefits they can get by incorporating NFC verification in their business operations.
The Landscape of NFC Technology
From changing the payments landscape to bringing a new wave of innovation in the ID verification market, NFC technology is making its way into the limelight in 2021. This is even more relevant because the mobile payments market is expected to top a staggering $421 billion by 2026. While on the other hand, research predicted that 66% of US customers think that digital-only mobile solutions are going to replace credit cards in the coming five years.
The market for NFC-based technologies is forecasted to grow from $18 billion in 2020 to $34.9 billion in 2025. The number is encouraging businesses to invest more in NFC verification solutions and to keep up with the technology trends. This allows enterprises to not only offer their customers a safe and secure experience but also to create convenience in business operations.
Corporate Benefits of NFC-based Verification
Electronic devices that have an NFC chip inside them can communicate with each other at a close distance of 10 cm (4 inches). The communication channel is established using the (Radio Frequency Identification) RFID principles designed and developed by Charles Walton back in 1983. Along with secure means of digital transfers, NFC comes with a customer-centric approach that offers reliability and ease of use. Listed below are some benefits of NFC that corporate organizations can use to develop a good market strategy and brand reputation.
1. User Experience is the Key to Success
When it comes to a business’ customers, the experience they get speaks volumes. To retain existing customers and to acquire new and loyal ones, a good user experience is a road to glory. NFC verification solutions allow businesses to use effective tools to provide a service that is convenient and reliable for the end-user. Businesses can speed up their onboarding procedures by integrating NFC-based verification into their existing systems.
What’s required from the customer is to scan their identity document (usually a government-issued official ID) that has their photo on it. These documents contain a microchip called the NFC tag that contains personally identifiable information related to the user. Using an NFC-enabled device, this information present on chip-based ID documents can be easily extracted and used to verify the user in real-time.
2. New and Existing Customers Matter
Customers are the backbone of any business. A legitimate customer base is essential for any business to prevent financial crime and digital fraud. With old-school methods in use, it becomes an uphill task for corporate entities to combat technologically advanced fraudsters. In this regard, the error-prone nature of manual verification adds fuel to fire.
Today, enterprises are quick in recognizing current advances in the market that can assist them in securing their customers’ identity. NFC authentication is becoming popular because customers can get themselves verified through a tap with the ID document. This allows business firms to expand their genuine customer base and retain current clients.
3. With Convenience Comes Trust
76% of customers engaging with online platforms are of the view that they expect a business to be cognizant of their needs. For enterprises, delivering customer-oriented services is a good bet since they come with a good deal of convenience. NFC-based verification is performed in an instance without the customer waiting in long queues to pay for their bills or to open an account.
The best thing about NFC is that most mobile devices come with this technology, and smartphones are something everyone carries with them all the time. This way, customers need not carry their payment (credit/debit) card each time they head out to the store to buy something.
4. Honestly, Security is the Best Policy
Safe and secure transactions are one important thing that will allow businesses to win customer trust. Near Field Communication makes this possible as data transfers in proximity reduces the chances of any external interception. When this technology is paired with biometric authentication, it guarantees foolproof ID verification – by using identity documents and unique biological features of the end-user. Biometric-based NFC verification allows enterprises to keep identity thieves at bay and continue to deliver a purposeful and seamless experience to their customers.
To Wrap it up
Near Field Communication is becoming a technology innovation in the corporate sector where it is offering effective customer authentication solutions. This ensures a quick and reliable onboarding process so that customers can enjoy secure transactions without worrying about their personal data being compromised or stolen. Banking on the current NFC verification trend, enterprises can build a better customer base and brand image in today’s highly competitive market.