Bluetooth vs NFC: Which is Better for Mobile Payments?
Mobile payment has become almost ubiquitous these days. With the pandemic outbreak and the need for social distancing, contactless payment methods have become a more popular choice. But which technology is better for mobile payments: Bluetooth or NFC? Let’s have a closer look.
Bluetooth
Bluetooth is a wireless technology that has been around for quite some time. It was invented in 1994 and has become a standard feature in most mobile devices nowadays. It operates over short wave radio frequencies and has great connectivity support. Bluetooth is commonly used for transferring files between devices like smartphones, tablets, and computers.
When it comes to mobile payments, Bluetooth has recently become more prevalent. Thanks to its fast data transfer speeds, it can process payments almost instantaneously. This makes it ideal for crowded places like shopping malls, airports, and train stations. Furthermore, Bluetooth has a longer range than NFC, which means that it can be used at a greater distance.
NFC
NFC stands for Near Field Communication. It’s a short-range wireless technology that allows devices to communicate with each other when they’re in close proximity. NFC is commonly used for contactless payment systems like Apple Pay and Google Wallet. It’s also used for pairing Bluetooth devices and sending files between them.
NFC is ideal for mobile payments because of its security features. Unlike Bluetooth, NFC requires very close proximity to the payment terminal, making it a more secure and reliable option. NFC-based payment systems also use tokenization to secure users’ payment information. The only downside of NFC is that it has a limited range, which can be a drawback in crowded places.
Which Is Better?
Both Bluetooth and NFC have their advantages and disadvantages, and ultimately, the choice comes down to personal preference. Bluetooth may be better suited for crowded places where a longer range is needed. On the other hand, NFC is a more secure option and is better equipped for smaller, less-crowded places like coffee shops and convenience stores.
In terms of adoption rate, however, NFC is ahead of Bluetooth when it comes to mobile payments. Most major retailers and payment providers have already integrated NFC-based payment systems. In contrast, Bluetooth is only just starting to gain traction for mobile payments.
##References
- List of countries with NFC mobile payment support: https://www.statista.com/statistics/438678/countries-with-nfc-enabled-payment-support/
- Bluetooth vs NFC: Which is better for mobile payments?: https://www.fisglobal.com/-/media/fisglobal/Files/FIS-Whitepaper-Bluetooth-vs-NFC-Which-Is-Better-for-Mobile-Payments-099834-January-2020-FINAL.pdf