# NFC, QR Codes, In-app and beyond…
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-01-13
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: The Evolution of Mobile Payments: NFC, QR Codes, and Beyond
Meta Description: Explore the evolution of mobile payments and how NFC, QR Codes, and BLE technology are shaping the future of in-store transactions. Simplifying payments and
URL: https://financedigest.com/nfc-qr-codes-in-app-and-beyondhtml

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‘Mobile payments’ is a broad term. As the ecosystem has developed, various new technologies have emerged to change the way we act and transact in-store.

**Integrating new with the old**

Some mobile payment [technologies are focused on seamlessly connecting the mobile device](https://www.financedigest.com/the-medical-device-technologies-market-to-stick-around-based-on-organic-expansion.html "The Medical Device Technologies Market to stick around based on organic expansion") to the existing payments infrastructure.

**NFC leading the way**

After an uncertain start, NFC has emerged as a leading proximity payment technology. The advent of host card emulation (HCE) significantly reduced the complexity for [banks and retailers deploying NFC payment](https://www.financedigest.com/polands-bank-millennium-third-quarter-results-hit-by-payment-holidays.html "Poland’s Bank Millennium third-quarter results hit by payment holidays") solutions, enabling users to make standardized EMV® contactless transactions with their mobile device. The position of NFC within the ecosystem was then cemented by the launch of the various OEM Pay platforms, which all use the technology.

As the OEM [Pay platforms and mobile wallets](https://www.financedigest.com/digital-wallets-the-new-way-to-pay.html "Digital Wallets: The New Way to Pay") solutions mature, NFC mobile payments are here for the long-run, supported by the wider proliferation of NFC-enabled smartphones and an expanding EMV contactless infrastructure. A key future growth trend is the significant increase in the deployment and adoption of [wearable payment](https://goo.gl/aCF3dB) solutions.

**Return of the QR Code**

The most [impressive growth](https://www.financedigest.com/e-commerce-fulfillment-services-market-to-reflect-impressive-growth-rate-to-during-forecast-period-observes-tmr.html "E-commerce Fulfillment Services Market to Reflect Impressive Growth Rate to During Forecast Period, Observes TMR") across mobile proximity payments, however, has been QR Codes. To date, this has been [largely driven](https://www.financedigest.com/growth-in-sales-of-fed-microbial-market-to-be-largely-driven-by-rising-consumer-adoption.html "Growth in Sales of Fed Microbial Market to be Largely Driven by Rising Consumer Adoption") by China. QR Code-based payment platforms AliPay and WeChat Pay have emerged as cultural phenomena, accounting for close to [$5.5 trillion in transactions in 2016](https://goo.gl/iV3kou) and essentially rendering cash obsolete in urbanized areas.

The [success of QR Codes](https://www.financedigest.com/digital-democratisation-through-low-code-the-future-of-finance-success.html "Digital democratisation through low-code – the future of finance success") is not just limited to Asia, though. Indeed, the largest [retail mobile payment platforms worldwide are united in their use of optical scanning technology such as QR Codes](https://www.financedigest.com/cracking-the-code-of-customers-future-value-in-retail.html "Cracking the code of customers’ future value in retail") and barcodes, including Walmart and Starbucks.

Retailers across the globe are therefore moving to leverage the simplicity and flexibility afforded by QR Codes at the point-of-sale. And with EMVCo introducing dedicated QR Code specifications in 2017 to promote global interoperability and [enhance security](https://www.financedigest.com/open-banking-as-a-means-to-enhance-social-commerce-security.html "Open banking as a means to enhance social commerce security"), deployments are set to accelerate.

**Creating new** buying experiences

Importantly, the power of mobile payments lies not only in simplifying existing payment processes, but in enabling new, enhanced, seamless buying experiences.

**Simple in-aisle payments**

Nobody likes waiting in line. For retailers, removing friction at the checkout is central to enhancing the overall customer experience. Mobile wallets incorporating [scan-and-go technology](https://goo.gl/mWXqNc) enable consumers to easily scan their items as they shop, and then checkout in-aisle with a simple in-app purchase.

This removes the need for a traditional, static point-of-sale, reducing checkout lines and freeing up valuable [real estate](https://www.financedigest.com/investing-in-real-estate-how-to-generate-passive-income.html "Investing in Real Estate: How to generate passive income").

**Enabling invisible payments with Bluetooth Low Energy (BLE)**

A step beyond in-aisle payments are ‘invisible payments’, which require no conscious interaction between the [consumer and the retailer](https://www.financedigest.com/direct-to-consumer-the-rite-of-passage-for-retail-in-2022.html "Direct to Consumer: the rite of passage for retail in 2022").

The technology integrations required to enable truly invisible payments are highly complex, and there is significant innovation in this space as [various schemes and pilots explore](https://www.financedigest.com/research-report-on-food-service-equipment-market-for-exploring-various-growth-dimensions.html "Research Report on Food Service Equipment Market for Exploring Various Growth Dimensions") different approaches. BLE beacons are essential for enabling in-store invisible payments, as they allow retailers to [monitor a consumer’s activity in-store by communicating with their connected devices](https://www.financedigest.com/the-remote-patient-monitoring-device-market-to-get-digitally-innovative.html "The Remote Patient Monitoring Device Market to get digitally innovative"). As retailers continue to drive payments innovation, BLE is likely to have a significant role to play.

**Tokenization – unifying mobile** [payments security](https://www.financedigest.com/contactless-payments-the-way-of-the-future-or-security-scare.html "Contactless Payments – The Way of the Future or Security Scare?")

Regardless of the payment method deployed, tokenization [technology is an essential element to enable secure](https://www.financedigest.com/how-open-source-technology-is-securing-the-future-of-financial-services.html "How open-source technology is securing the future of financial services") mobile transactions. [Payment tokenization](https://goo.gl/t1ntUc) replaces a customer’s primary account number (PAN) with a unique payment token that is restricted in its usage, [for example](https://goo.gl/x9JFWd), to a specific device, merchant, transaction type or channel. This means tokenization can help to [secure in-store transactions made via mobile wallets](https://goo.gl/DiZBkq) across various differing payment technologies, whether it be NFC, QR Codes or BLE. It also reduces the risk and impact of card-on-file fraud using stored credentials, enhancing the [security of in-app and in-aisle payments](https://www.financedigest.com/top-tips-for-securing-softpos-payments.html "Top tips for securing SoftPOS payments").

As mobile payment technologies emerge and evolve, the [way we pay](https://www.financedigest.com/four-innovative-ways-to-pay-for-products-online.html "Four Innovative Ways to Pay for Products Online") in-store is set for unprecedented change. The promotion of safe, secure experiences is key to establishing [consumer confidence](https://www.financedigest.com/asian-shares-rise-after-consumer-confidence-boosts-nasdaq-to-record-high.html "Asian shares rise after consumer confidence boosts Nasdaq to record high") and driving the adoption of new payment methods. The role of tokenization, therefore, is poised for significant expansion [across the mobile payments ecosystem](https://www.financedigest.com/open-finance-can-help-unlock-innovation-across-the-financial-ecosystem.html "Open Finance can help unlock innovation across the financial ecosystem").


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