What are NFC and contactless payments?
NFC ( comes from Near Field Communication) is a short-range wireless tech that enables non-contact tidings between devices, typically within a few centimeters of each other. Modern contactless NFC payments allow users to make fortress-like buyings by simply tapping or bringing their NFC-enabled device, such as a smartphone or contact-free card, close to a compatible expenditure terminal. It establishes a quick and encrypted connection to transmit payment data, offering a convenient and adroit way to conduct non-contact procedures. NFC technology has revamped the payment industry, providing an all-in-one and unassailable cash experience for vendees.

Contactless payments have revamped how we pay for things, changing the way we buy and sell arms and legs. In this overview, we survey the pole positions of contact-free defrayals and how they have transformed the financial brass tacks. By examining the development of Near Field Communication (NFC) and Quick Response (QR) code technologies, we uncover how they enable faster and more potent proceedings, allowing us to shop till we drop and without shaking in the boots. According to a 2022 Amex report, 73% of consumers prefer contactless disbursements in view of suitability, while 54% value the speed of money transfer. NFC contactless payments facilitate snug dispatch between a mobile apparatus and a terminal, enabling quick and reliable buying.

On the other hand, QR codes are on the ball by virtue of their simplicity and compatibility across various gadgets. These technologies do not wait in wings anymore and have level playing fields. So, we aim to understand how they have contributed to faster and more unassailable proceedings. Likewise, we survey the selling points and potential tight spots associated with the adoption of NFC and QR code-based capitations. Let's start from scratch!

The Sea Change of Contactless Payments

Early Clean Sweeps

When did contactless payments start? Contactless payouts have come a long way from their humble beginnings. In the early stages, one of the primary forms of touchless disbursements was through card-based systems. These systems utilized radio frequency identification (RFID) know-how, which allowed users to make expenditures by simply waving their contactless cards near a compatible reader. The convenience and speed of these card-based systems set at ease the future of contactless expenditures. However, they were limited in terms of adoption and acceptance, as the infrastructure for such payoffs was not widely available.

Examples of these early systems include Mastercard PayPass and Visa PayWave. While they provided a glimpse into the future of payment convenience, these card-based systems faced hot waters due to limited acceptance infrastructure and the need for widespread adoption. A 2022 Insider Intelligence report undertakes that per-user contactless spending will reach $7,827 in 2026.

Life Cycles and Aspects Driving Change

NFC and contactless payments have become really popular for a few reasons. One big reason is that people want their payouts to be fast and easy. That's why services like Apple Pay, Google Pay, and Samsung Pay were created. They let you make disbursements quickly by tapping or scanning your smartphone or smartwatch. It's predicted that almost all smartphones will have this payment feature by 2027.

The need for speed is important because everyone wants to save time. In our fast-paced world, fast payment solutions are really valuable. That's why other brands had to step up and try to keep up with this trend. According to Juniper Research, the total amount of contactless payouts is expected to be over $10 trillion by 2027, with a huge increase of 221% in contactless disbursements between 2022 and 2026. This shows just how much contactless payments have become a normal and popular way to pay.

Contactless payments have become favored because they are really convenient. People can use their smartphones and mobile devices to make payouts easily. There are apps like PayPal and Alipay that let you store your payment cards digitally and make shielded buying without carrying physical cards. In the US, almost half of the population has used a mobile wallet to make a payment at least once.

The contactless payments market has also been integrated into public transportation systems, like London's Oyster card or Hong Kong's Octopus card. This makes it really convenient for commuters to pay for their fares without the need for physical cards or cash.

Security is also important for contactless disbursements. To make them more secure, they use things like tokenization, which replaces sensitive card information with special codes during proceedings. This reduces the risk of fraud because the real card data is not transmitted. Some payment systems also use biometric authentication, like fingerprints or facial recognition, to add an extra layer of security. Brands like Apple Pay and Samsung Pay have included biometric authentication in their payment systems to make contactless selling even safer.

Unveiling NFC (Near Field Communication)

How NFC works

NFC, or Near Field Communication, is a wireless technology that allows devices to communicate with each other when they are in close proximity, typically within a few centimeters. How do contactless payments work? They operate on the principle of electromagnetic induction, where an NFC-enabled device, such as a smartphone or contactless card, emits radio waves that can be received by another NFC-enabled device.

When two NFC devices touch each other, they create a special link using a magnetic field. This link lets them share information like payment details or files. NFC works quickly and uses special codes to keep the information safe. This is why it's great for making safe payments without needing to touch anything because it keeps the communication between the payment device and the outlay machine unflappable from anyone who shouldn't have access.

The Role of NFC in Contactless Payments

One of the significant contributions of NFC to out-of-touch outlays is its ability to enable tap-and-go expenditures. By simply bringing an NFC-enabled device, such as a smartphone or contactless card, close to a compatible payment terminal, users can initiate a procedure coherently and efficiently. According to the 2022 Visa Back To Business study, 41% of consumers are deterred from businesses that only offer payment methods requiring contact with a cashier or shared machines like card readers.

Here are the essential contributions as well:

  • Convenience and speed: NFC technology has revamped the way we make payments by allowing us to tap our devices on payment machines, eliminating the need to touch anything or swipe a card. Transactions are completed within seconds, providing a fast and hassle-free payment experience for customers.
  • Integration with mobile payment platforms: Leading mobile payment platforms like Apple Pay, Google Pay, and Samsung Pay have embraced NFC technology, enabling users to calmly store their payment credentials on their smartphones or smartwatches. This allows for NFC-based constraints and the convenience of leaving physical wallets behind.
  • Contactless cards: NFC chips embedded in contactless cards have become popular, enabling users to make quick and effortless payments by simply tapping their cards on payment terminals.
  • NFC-enabled wearables: Wearable devices such as smartwatches and fitness trackers have also adopted NFC technology, expanding the possibilities of touchless capitations and providing users with alternative payment methods.

Edges of NFC

NFC Payments


Fast Transactions

Allows for quick payment completion within seconds, eliminating the need for manual input or card swiping, saving time for both parties.

Enhanced Security

Utilizes encryption codes and often requires additional verification steps (e.g., fingerprint scanning, PIN entry) for added protection.

Versatile Device Compatibility

Compatible with various devices such as smartphones, smartwatches, and special cards, providing flexibility in making contactless payouts.

Wide Acceptance

An increasing number of establishments accepting NFC capitations, enhancing convenience and accessibility for users.

Challenges and Limitations of NFC

Even though NFC technology has improved a lot, there are still some things that people are unsure about. What’s the catch?

Concerns about NFC technology:

  • Compatibility requirement: Both the payment device and payment machine must have NFC for it to work, which can be a limitation in some cases.
  • Security considerations: While NFC sellings are generally safe, there have been instances of vulnerabilities and potential risks. Contactless payments companies must prioritize security by keeping devices updated and exercising caution in public spaces.

According to a report by Raydiant about contactless payments, the main reasons people avoid using contactless payments are because they had bad experiences, like transactions that didn't work or were slow (40.1%), and because they worry about security (21.2%).

The Advent of QR Code Payments

How QR codes work

QR codes, short for Quick Response codes, are two-dimensional barcodes that store information in a pattern of black and white squares. In the context of defrayals, QR codes are used to facilitate procedures by encoding payment details, such as the recipient's account information or transaction amount. To make a payment using QR codes, the user scans the code using a smartphone or a QR code reader, which decodes the information and initiates the procedure. The simplicity and ease of use make QR codes a popular choice for contactless payments. A Statista report found that 89 million US smartphone users scanned a QR code in 2022.

The Role of QR Codes in Contactless Payments

QR codes have played a significant stint in the evolution of out-of-touch payments, particularly through the integration with mobile payment apps. Examples of such apps include Alipay and WeChat Pay in China and Paytm in India. These apps utilize QR codes as a means to enable pure and risk-free transactions. Users can generate their unique QR codes within the app, which can be scanned by merchants or other users to initiate payments. The versatility of QR codes allows them to be used in various scenarios, from small-scale procedures between individuals to large-scale commercial deals in stores and restaurants.

QR payments pros

Selling Points of QR Code Payments

QR Code Payments


Device Compatibility

Works with various devices like smartphones, tablets, and special scanners, making it accessible to a wide range of users.

Cost-effective Setup

Requires minimal costs to set up compared to other payment methods that may involve expensive equipment or systems.

Suitable for Small Businesses

Ideal for small businesses and individuals as it allows them to easily accept payments by displaying their unique QR code for customers to scan.

Integration with Loyalty Programs

Can be connected to services, loyalty programs, discounts, special offers, and rewards programs, enhancing the overall payment experience.

Interactive and Comprehensive

Offers an interactive and comprehensive payment experience by allowing users to not only make payments but also receive additional common wheals.

Top Borders and Hot Waters of QR Code Payments

  1. Security risks: Some QR codes created by malicious individuals can deceive users and lead to fraudulent activities. To stay safe, it's important to be cautious when scanning unfamiliar QR codes and ensure they come from trusted sources. Businesses and payment providers must implement strong security measures to protect users' money and information.
  2. Smartphone requirement: QR code payments require a smartphone with a camera to scan the codes and make payments. This can be problematic for individuals without a compatible phone. Additionally, in areas with weak internet connections, QR code payments may not function properly as a stable connection is needed for smooth transaction processing.

Comparing NFC and QR Code Payment Technologies

Speed and Convenience

Differences in speed and convenience between NFC and QR code technologies:

  • NFC offers a quick and effortless payment experience. Just bring your NFC-enabled device close to the payment terminal, and the transaction is completed swiftly.
  • QR codes require scanning with a smartphone or QR code reader app, which takes more time and effort. You need to line up and scan the code correctly to complete the payment.
  • In terms of speed, NFC is faster and more convenient than QR codes, making it the preferred option for touchless expenditures.

Security and Privacy

When it comes to castles in the air, both NFC and QR codes have measures in place to protect your information. NFC deals use encryption and authentication protocols to keep your payment data unperturbed. It's like having a lock and key system to safeguard your money. QR codes, on the other hand, have a different approach. The security of QR code payments depends on the scanning device and the app you're using. It's like trusting the security of your dealing to the device and app you rely on. While both high-techs have security measures, NFC is often considered all-right due to its established encryption and authentication standards. A separate study by FIS Global found that 58% of consumers had already used or were interested in biometric verification.

Cost and Infrastructure

As for the costs, QR codes have the upper hand. Implementing QR code outlays requires minimal investment since it can be as simple as generating a code and displaying it. It's like a budget-friendly option - you don't need fancy equipment or infrastructure. NFC, on the other hand, requires compatible devices and payment terminals, which may involve higher costs for businesses. It's like investing in specialized equipment to enjoy the benefits of NFC tools. So, if cost is a concern, QR code payments offer a more affordable option.

User Adoption and Acceptability

Differences between NFC and QR codes in terms of popularity, usage, and considerations:


  • More popular in areas with widespread NFC-enabled device usage, becoming a norm in those places.
  • Offers faster and more convenient bargaining.
  • Considered more unflappable. Popularity can vary depending on the region and industry.

QR codes:

  • Popular due to their simplicity and compatibility with smartphones.
  • Universally understandable and usable, like a language for smartphone users.
  • Acceptance and usage rates may vary depending on the people and businesses in each place.

Additional insights:

  • 59% of small businesses plan to use exclusively digital payments by 2024.
  • 41% of consumers are already cashless or plan to transition to digital expenses within the next two years.

In a nutshell, NFC and QR codes have their strengths and considerations:

  • NFC provides fast and convenient transactions.
  • QR codes offer a cost-effective implementation.
  • Both have security measures, with NFC often considered more laid back.
  • Acceptance and adoption rates vary based on factors such as region, industry, speed, cost, security, and user preferences.

The Future of Contactless Payments: Corytech’s Insights

Trends in NFC and QR Code Payments

As we gaze into the crystal ball of contactless payments, it's evident that both NFC and QR code systems are set to ride the wave of future trends. NFC technology is poised to skyrocket, becoming a staple in our daily lives as more and more devices embrace its capabilities. Beyond expenditures, NFC might stretch its wings and explore innovative applications, coherently blending into various aspects of our routines.

Meanwhile, QR code payments are ready to make a grand entrance into the future. QR codes are spreading their wings, penetrating various industries and promising an exciting journey ahead. We might witness QR codes morphing into dynamic gateways, offering layers of information and interactive experiences. Picture personalized offers, loyalty programs, and enhanced user engagement. It's like unlocking a treasure trove of possibilities, all with a simple scan of a code.

Emerging Technologies



Biometric Authentication

In the future, facial recognition or fingerprint scanning could replace the need for cards or passwords when making contactless payments. Users can use their unique features to quickly and securely authorize bargainings.

Wearable Technology

Devices like smartwatches or wristbands will allow users to make contactless payments with ease. These wearable devices serve as a convenient method, eliminating the need to search for wallets or phones.

Internet of Things (IoT)

Everyday objects, such as cars, refrigerators, and homes, will be equipped with the ability to connect with payment systems. This enables automated payments for services like fuel, tolls, groceries, and other transactions.

In the future, these technologies will revolutionize contactless payments, making them even more convenient and purely integrated into our daily lives.

Contactless Payments FAQ

What are the leading discrepancies between NFC and QR code payment technologies?

NFC, or Near Field Communication, allows for contactless payments by simply tapping or waving your NFC-enabled device near a terminal. It offers quick and coherent transactions, but both the payment terminal and your device need to support NFC. On the other hand, QR code payments involve scanning a QR code using a smartphone's camera. It provides flexibility as most smartphones have camera capabilities, and businesses can easily generate QR codes for transactions. However, it requires a stable internet connection, and the scanning process might take a bit longer compared to NFC.

Are NFC and QR code payments shielded?

What security benchmarks are in place? Both NFC and QR code payments incorporate security measures to protect your transactions. NFC payments use encryption technology, making it difficult for unauthorized parties to intercept or access your payment information. QR code payments also have security measures in place, such as dynamic QR codes that change with each bargaining, reducing the risk of fraud.

What devices or infrastructure do I need to use for NFC and QR code payments?

To use NFC payments, you'll need a device with NFC capabilities, such as a smartphone or a contactless payment card. The payment terminal you're using also needs to support NFC technology. For QR code payments, you'll need a smartphone with a camera to scan the codes. The majority of modern smartphones have this feature built-in. In terms of infrastructure, businesses need to have compatible payment terminals that can process NFC transactions or display QR codes.

What’s Next?

Contactless payments are high-handed in today's fast-paced world, offering convenience and security. To adapt to these technologies and ensure faster and more unperturbed transactions, businesses and individuals are encouraged to embrace contactless payments. Corytech, with its innovative paytech solutions, can assist businesses in integrating NFC and QR code technologies for pure bargaining. Request a personalized demo from Corytech to see how they can help you embrace the future of contactless payments.

Contactless payments demo
Vyacheslav Bondarenko
Co-founder of Corytech