White paper describes how retailers can meet customer preferences while smoothly migrating to EMV-mandated secure payment technology
WAKEFIELD, Mass. – Nov. 17, 2015 – The NFC Forum today announced the publication of a white paper entitled “U.S. Retailers: Why You’re Not as Ready as You Think for Today’s Retail Payments Migration,” which helps retailers ensure that they are fully prepared to address the payment transitions that are taking place in today’s retail environment.
According to LexisNexis, fraud cost U.S. retailers $32 billion in 2014, a 38% increase over 2013. As of October 1, merchants that have not upgraded their payment infrastructure from magnetic-stripe card swipes to new EMV-compliant systems could be liable for fraudulent charges. A survey by the management consulting firm The Strawhecker Group showed that only 27% of merchants in the U.S. were expected to be able to process chip cards by the October 1 deadline. The NFC Forum’s new white paper is intended to guide retailers toward the best return on investment when evaluating upgrade options for their payment systems.
The white paper describes ways for merchants to secure their businesses against fraud while accepting payment from customers in the way they prefer to pay. Consumer use of mobile payments is growing; according to a forecast byeMarketer, mobile payments will triple in the U.S. in 2016. Retailers at any stage of their POS upgrade process will receive guidance in the paper co-written by Matthew Bright, Chair of the NFC Forum Retail SIG, and Frank Tekampe, Chair of the NFC Forum Payments SIG. The document is available for download at no charge.
Retailers will learn how to transform a mandated infrastructure expenditure into a productive investment that boosts security while simultaneously enabling new kinds of digital consumer engagement through their customers’ smartphones, smart watches, and other NFC-enabled mobile devices.
Combining security, bidirectional communication, and a personalized customer experience, NFC technology addresses fundamental security issues while creating new opportunities for retailers to personalize customer experiences, via loyalty account data, coupon redemption, and other promotional offers. With more than a billion NFC-capable smartphones in the hands of consumers around the world, retailers who implement NFC at the point of sale can take advantage of their investments today.
“With margins tight and consumers exposed to more buying choices than ever, retailers generally prioritize the kinds of activities that get customers in the door and motivate them to spend more. Store technology infrastructure spending lags far behind,” said Bright. “But as our new white paper makes clear, the mandated shift in point-of-sale card security technology also creates an immediate opportunity for retailers to improve their bottom lines by using NFC interactive technology, such as smartphones and smartwatches, to speed checkout and enhance their relationships with consumers.”
About Near Field Communication Technology
NFC technology makes life easier and more convenient for consumers around the world by making it simpler to make transactions, exchange digital content, and connect electronic devices with a touch. A standards-based connectivity technology, NFC harmonizes today’s diverse contactless technologies, enabling current and future solutions in areas such as access control, consumer electronics, health care, information collection and exchange, loyalty and coupons, payments, and transport. NFC technology is supported by the world’s leading communication device manufacturers, semiconductor producers, network operators, IT and services companies, and financial services organizations. NFC is compatible with hundreds of millions of contactless cards and readers already deployed worldwide.
About the NFC Forum
The NFC Forum (www.nfc-forum.org) was launched as a non-profit industry association in 2004 by leading mobile communications, semiconductor, and consumer electronics companies. The Forum’s mission is to advance the use of Near Field Communication technology by developing specifications, ensuring interoperability among devices and services, and educating the market about NFC technology. The Forum’s global member companies are currently developing specifications for a modular NFC device architecture, and protocols for interoperable data exchange and device-independent service delivery, device discovery, and device capability. The NFC Forum’s Sponsor members, which hold seats on the Board of Directors, include leading players in key industries around the world. The Sponsor members are: Apple Inc., Broadcom Corporation, Dai Nippon Printing Co. Ltd., Google, Inc., Intel, MasterCard Worldwide, NEC, Nokia, NXP Semiconductors, Qualcomm, Samsung, Sony Corporation, STMicroelectronics, and Visa Inc.