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NFC and NFC Payments | Prachanda Muni Bajracharya | Gurzu

November 01, 2023

NFC and NFC Payments | Prachanda Muni Bajracharya | Gurzu

Prachanda talked about NFC (Near-field communication), it's usages and the scope of its use in Nepal.


November 01, 2023

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  1. Gurzu Confidential • Enables communication between two electronic devices •

    Distance: 4 cm or less • Based on inductive coupling • Similar to RFID but with two way communication • Developed by Sony, Nokia, and Philips (The NFC Forum) • Frequency range: 13.56 MHz • NFC Standards: ISO/IEC, Felica 2 What is NFC (Near-field communication)?
  2. Gurzu Confidential • Two types of NFC communication: • Active

    • Passive • NFC device works on three modes: • NFC card emulation: Apple pay, Google pay • NFC reader/writer • NFC peer-to-peer More on NFC
  3. Gurzu Confidential • Contactless Payment • Open webpage through URL

    • Unlock door • Transfer files • Connect to WiFi network • Set an alarm • Make call and send SMS • … and many more 5 Applications
  4. Gurzu Confidential • Contactless payment using NFC technology • Payment

    can be done through a mobile phones, wearables, debit / credit cards, etc • Uses security techniques like: ◦ Tokenization ◦ Point-to-Point Encryption(P2PE) ◦ Maximum transaction limit • Also known as “Tap-to-pay” 6 NFC Payment
  5. Gurzu Confidential • Internet access is not needed as compared

    to QR Payments • Fast and comparatively secure than other payment options • In some cases works without a power supply • Payment without pins or passwords as compared to Debit/Credit cards • Massive growth during Covid NFC Payment vs … …but it is not a perfect solution
  6. Gurzu Confidential • Lack of awareness • Less number of

    NFC services • Only few Android devices have NFC capabilities. Probable Reasons: To lower the cost and lack of NFC services • Higher cost than QR payments Why it’s not in use in Nepal?
  7. Gurzu Confidential • Nepal Clearing House Limited (NCHL) has launched

    the NFC payment service on its ConnectIPS payments app on February 2023 • FonePay has launched FoneTAG for offline payment through mobile phone phone in February 2023 • Everest Bank in collaboration with has launched FoneTAG on August 2023 • Contactless payment through payment cards has already launched by various banks. NFC in Nepal
  8. Gurzu Confidential • NFC payment can be made available alongside

    QR payment. • Esewa, Khalti and other banking app can also have “Tap to pay” service. • NFC may be available on newer Android phones if the NFC services in Nepal increases. • Payment through wearables In Future