Sound-Based Payments as an Inclusive Technology for the Developing World

Near Field Communication (NFC) is a form of contactless communication between devices like smartphones or tablets, which allows a user to wave the smartphone over an NFC-compatible device to send information without needing to touch the devices together or go through multiple steps while setting up a connection.

As explained by professionals, the technology behind NFC allows a device – known as a reader, interrogator, or active device – to create a radio frequency current that communicates with another NFC-compatible device or a small NFC tag holding the information the reader wants. Passive devices, such as the NFC tag in smart posters, store information and communicate with the reader but do not actively read other devices. This allows both devices to send and receive information.

Businesses and individuals are increasingly reliant on the technology as it carries efficiency benefits in terms of speed and enhanced experience. Companies like Apple, Xiaomi, Huawei, Samsung, etc. – all major phone manufacturers around the world – are now actively pushing proprietary payments solutions embedded in their smartphones employing NFC technology. All modern smartphones are enabled with NFC tags, which itself builds a foundation for all contactless payments providers to develop and market a multitude of solutions.

Image source: NFC payments are picking up in developed economies but emerging economies are different

There could be over a billion mobile device owners globally without enabled NFC technology


To continue reading, sign up for MEDICI Inner Circle and get free access for 7 days.
100,000+ FinTech professionals trust MEDICI Inner Circle to stay up to date on the latest in financial services.