Business.com aims to help business owners make informed decisions to support and grow their companies. We research and recommend products and services suitable for various business types, investing thousands of hours each year in this process.
As a business, we need to generate revenue to sustain our content. We have financial relationships with some companies we cover, earning commissions when readers purchase from our partners or share information about their needs. These relationships do not dictate our advice and recommendations. Our editorial team independently evaluates and recommends products and services based on their research and expertise. Learn more about our process and partners here.
Digital wallets are quickly gaining in popularity. Learn the ins and outs of NFC payments to determine if your business should start accepting digital payments.
When a customer wants to pay you, accepting their preferred payment method increases their satisfaction and can boost your bottom line. In particular, digital payment methods are growing in popularity because of their ease of use and convenience. Near-field communication (NFC) mobile payments are a type of digital payment rapidly gaining adoption among consumers of all ages. We’ll explain what NFC mobile payments are, their pros and cons, and everything else retailers need to know to incorporate this increasingly widespread payment option.
Editor’s note: Looking for the right credit card processor for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.
An NFC payment is a contactless payment made using NFC technology via a smartphone, smartwatch, or NFC-enabled credit or debit card. This technology supports wireless communication between the NFC-enabled card or device and a merchant’s payment terminal or other payment hardware.
Customers use NFC payment technology via the following methods:
Digital wallets are the primary driver of NFC mobile payments. According to Statista, mobile wallets accounted for about half of all global purchases — in-person and online — in 2023. Additionally, according to the 2025 Commerce and Payment Trends Report, 60 percent of the global population is expected to use digital wallets by 2026.
NFC technology takes advantage of the radio frequency waves already used by mobile phones. These waves only work at close distances — typically within about 1.5 inches (about four centimeters) from the NFC-enabled device or card to a reader or payment terminal. This practice ensures a customer does not unwittingly pay for someone else’s purchase, providing an added layer of security.
NFC payments are wireless, which may make some people uncomfortable about the security of their payment details. However, these payment types are considered safer than magnetic stripe cards. Plus, they offer about the same level of security as EMV (chip) cards because they use tokenization and dynamic encryption. Here’s how it works:
Still, Brittany Allen, senior trust and safety architect at Sift, emphasized that, like all payment methods, NFC mobile payments carry some potential risk for consumers.
“For example, a fraudster may be able to access someone’s payment data if the terminal isn’t properly encrypted,” Allen explained. “Lost or stolen NFC-enabled devices like smartphones also pose a risk, especially if not secured with strong authentication like PIN codes or biometrics.” Malicious apps that contain malware or fraudulent links that lead to phishing attacks are other potential risks.
Allen stressed the importance of secure payment terminals and cybersecurity best practices. “Equally important is having robust fraud detection systems in place to identify unusual transaction patterns and other suspicious activity before any data is compromised,” Allen added.
Consider the following pros and cons when deciding whether to accept NFC mobile payments at your business.
Allen noted that Apple, Google and Samsung currently dominate the mobile payment market because of their offerings: Apple Pay, Google Wallet and Samsung Wallet. All of which have earned them name recognition and brand trust.
“Other providers may not have the same market share because Apple, Samsung and Google all have an advantage as well-known hardware providers for consumers,” Allen explained. “They also offer users a smooth and convenient experience by easily integrating with their broader tech ecosystems.”
Allen further cited these companies’ robust security focus as a reason for their digital wallets’ success. “Their investment in advanced security features like tokenization, encryption and biometric authentication (and partnerships with well-known merchants) also contributes to their widespread acceptance.”
Here’s a closer look at Apple Pay, Google Wallet and Samsung Wallet.
Numerous merchants already accept Apple Pay — a payment method linked to the Apple wallet, which is conveniently preloaded on all iOS devices. According to Capital One Shopping research, Apple Pay is the top NFC payment method; it boasts a 92 percent market share and, according to Statista, 500 million worldwide users.
You can use Apple Pay once you’ve added payment cards to your Apple Wallet (which supports up to 16 cards as of iOS 17). You can also use Apple Pay when shopping online or via mobile apps and websites by selecting the Apple Pay option if it’s available.
Apple Pay uses a system called tokenization, meaning that even Apple does not have an unencrypted copy of customers’ payment information. Encryption occurs at the issuing bank level. This, combined with Face ID authentication, makes Apple Pay one of the most secure NFC mobile payment apps.
Google Wallet (formerly Google Pay and Android Pay) is Google’s mobile payment service. In 2024, the company discontinued the Google Pay app in the U.S. and transitioned users to Google Wallet for secure in-store and online payments. It’s available on both Android and iOS devices. Most Android devices have built-in support for Google Wallet, enabling users to store payment cards, event tickets, passes and more. Additionally, users can send money to other Google Wallet users or transfer funds directly to friends’ bank accounts.
According to Statista, about 30 percent of U.S. survey respondents said they’ve used Google Wallet at a POS terminal in the past year, while another 30 percent indicated online usage.
Samsung Wallet was introduced in 2022 following the merger of Samsung Pay and Samsung Pass. The goal was to provide a single platform for managing payment cards, digital IDs, keys, tickets, boarding passes and more.
Similar to Google Wallet, Samsung Wallet is designed for Android devices. However, its compatibility is limited to select Samsung smartphones that run Android 9 or later and support NFC mobile payments. This digital wallet supports NFC and magnetic secure transmission (MST) technology, enabling transactions at more payment terminals than some competing digital wallets. However, MST does not work at gas station pumps or ATMs that require physical card insertion.
Samsung Wallet has the smallest market share of the major mobile wallets and is used by roughly one in 10 Americans.
Payment facilitators such as PayPal Zettle and Square allow you to accept multiple types of NFC mobile payments. Here’s what you should know about these top options:
Neil Cumins contributed to this article.