The payment card giant MasterCard is throwing its full weight behind near-field communications (NFC) payment systems, also known as contactless payment technology. NFC technology allows for contactless payments to be made using radio waves to transmit data between devices that support the technology, provided they are in close proximity at the point of sale.
A recent post on Out-Law.com is reporting that MasterCard’s announcement to mandate point of sale (POS) terminals that facilitate NFC payments comes just days after Apple revealed that it was entering the mobile payments market.
As the only full-service point of sale provider — from software development to franchise incubator to ongoing support — part of Sintel’s commitment to our customers and industry is to share ideas and information. Whether you’re a first-time franchise hopeful, a small business owner or an established chain, it’s always smart to stay on top of the latest point of sale security best practices to achieve financial success.
Here are the highlights of the Out-Law.com post, “MasterCard Backs Contactless Payments Technology By Mandating Changes To Point Of Sale Terminals”:
• MasterCard is giving retailers in Europe until January 1, 2020 to replace existing point of sale terminals with ones that support NFC payments, if they want to be able to accept consumer payments with MasterCard or Maestro from that date.
• MasterCard points to research showing that there is to be a “fourfold” increase in the number of mobile devices supporting NFC technology in the next five years.
• “Europeans can already use contactless cards or NFC enabled mobile payments in 36 countries across Europe and their enthusiasm for this safe and simple way to pay is evident,” Javier Perez, president of MasterCard Europe, said in a statement quoted by Out-Law.com. “MasterCard wants to ensure that mobile and contactless payments are safe and simple wherever you are in Europe making it easy to pay how you want when you want.”
• Angus McFadyen, a technology and payments law expert with Pinsent Masons, the law firm behind Out-Law.com, says there is a need for technical standards to “ensure that NFC-enabled POS terminals work with both cards and the growing number of enabled mobile devices.”
• The deadline for adopting new POS devices for accepting MasterCard payments applies equally to large and small retailers, and an exception would not be made for businesses using lightweight POS devices.
• “Our new contactless standard is announced to ensure that those with mobile devices can tap to pay wherever MasterCard is accepted, and takes into account the fact that mobile devices cannot be dipped or swiped into readers without contactless function,” said a spokesperson for MasterCard in the post. “As the supply chain for acceptance devices, including mobile POS devices, is becoming developed to support contactless it is the right moment to set the vision and aim for 100% acceptance coverage. This is why both mobile POS devices as well as small and large retailers are included in the new standard.”
• “As there is quite a good lead time for existing retailers to come into compliance, there should be sufficient time for those readers to fully depreciate and go through normal replacement cycles so as not to cause undue burden on retailers,” the company said.
• MasterCard also said that a study into consumer attitudes toward contactless payments revealed that the UK and France are among the European countries where the appetite for contactless payments is greatest.
• “In 2013 alone the number of MasterCard and Maestro contactless transactions across Europe tripled and the volume spent on those transactions increased four times,” said Chris Kangas, MasterCard’s head of contactless payments in Europe. “Contactless users tell us on social media that they love tapping and want to tap more. [This] announcement is a much needed stake in the ground, marking the next milestone for contactless.”
Read the full Out-Law.com post here.
For more insights into point of sale security, check out our related posts, Point of Sale Integration With Enterprise Resource Planning Is Changing the Face of Retail, MPOS Taking Care of Business: Cash Registers Have Left The Building, Safer Consumer Transactions May Be In The Cards, EMV Technology Chips Away at Credit Card Fraud, and Secure Your Payments, Or Pay The Piper.
Just as we share our vast point of sale experience and expertise with startup owners in order to help them make the best decisions from the very beginning, we at Sintel Systems are happy to share articles, advice and commentary about retail point of sale and security.
Whether you’re a first-time franchise hopeful, a small business owner or an established chain, it’s imperative to stay on top of the latest point of sale best security practices to achieve financial success.
If you are interested in learning more about Sintel’s point of sale (POS) systems and how our knowledge and support can impact your future success, call us for a complimentary phone consultation.
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