What Are The Best Gadgets That Have Emerged To Aid Payment
There have many advancements for payment technology during the last 15-20 years and this has included face to face transactions as well as eCommerce. In this article I wanted to cover the recent gadgets and explain how they have progressed to make card transactions as efficient as possible while still keeping security its number one priority.
Over the last two decades the United Kingdom has undergone some pretty big changes when it comes to payment processing technology,
these changes have always been in an attempt to progress secure transactions and convenience but during the last several years we have seen the efficiency of devices evolve dramatically.
There was a small amount of controversy surrounding the Chip and Pin development during 2004 when all UK residents received a new credit or debit from their high street bank which included a small electronic chip that was a unique identifier and prevented cards from being cloned. While there are still minor loop holes that need to be addressed, the overall result was a huge reduction in fraudulent transactions.
Having a customer enter a pin code rather than provide their signature was a big step in preventing fraud, even though U.S countries still use the magnetic stripe card, travelers from either country can still make payment by entering their pin.
Many everyday people overlook the sophistication of payment systems and take for granted how it conveniences their everyday lives, while extensive effort goes into ensuring unauthorized transactions do not occur and consumers enjoy a hassle free shopping experience.
So What Are the Latest Advancements?
Technology and gadget enthusiasts might already be aware of some developments that have occurred over the last several years that have put card payments in the consumers hands with out the need for a cashier to interfere.
One very small piece of technology that was the inspiration of Twitter founder 'Jack Dorsey' was the 'SquareApp', a miniature card reader which could be plugged into an iPhone or Android and allowed the user to swipe magnetic stripe cards. This device was introduced in 2010 and only required the person to sign up at the SquareUp.com website, download the App from the iStore and pay a small processing charge for each transaction.
The biggest change which has occurred in 2012 is actually more widespread than any small attachment and that has come with the introduction of 'Contactless' or 'Near Field Communication'. NFC works by having a contactless card which includes wires inside that transmit radio frequencies to a contactless terminal, consumers can simply wave their new card over the machine and a purchase is made.
There were a few concerns among skeptics when large retailers began piloting this new method of payment but these seem to have been quelled as the card association promoted the security regulations for such transactions. It has been stated that transactions cannot be above £20 and after several contactless transactions in a row, the customer will be required to enter their pin number.
In conclusion, while the roll-out of contactless payment has been slow in the United Kingdom and across the globe, it definitely appears to be the way of the future. As we see near field communication escalating to contactless phones such as the Samsung Galaxy S III and contactless wristbands at London festivals, it seems that we will be using cash less and less in years to come.
