Since most of the mobile gadgets run under the Android OS, the service will have to compete primarily with a similar application from Samsung already.
The technology of contactless payments from smartphones.
You can make payments in this way not from all smartphones, but only from those that have an NFC module. This data transfer technology is similar to Bluetooth, but the range of reception of the signal is much smaller – about 10 cm. This helps prevent possible interception of the radio signal and exclude possible theft of funds from the bank card.
Synchronization of a smartphone and a special reader (for example, in a terminal) takes less than a second. It is enough to bring the device to a close distance to the reading sensor. It does not require any additional authentication procedures. In many cases, you do not even need to open the application, just unlock the smartphone screen. Payments for small amounts usually do not require additional confirmation, the application supports the “Tap & Go” function. PIN-code, fingerprint scan or other confirmation is requested only when significant amounts are written off the card.
Where are payments from smartphones accepted?
You can make payment using a smartphone in any places where there is support for NFC technology. Terminals with the support of contactless payments are installed in many places, from shopping centers, ending with restaurants, cafes, car refueling and even public transport. For India, this technology is quite new, so while it is at the stage of active implementation. With each month, more and more equipment with NFC support is installed in cities. Therefore, we can state with confidence that this technology is the future.
Internet shops and mobile applications.
Users of Android-smartphones often make purchases on the Internet. Therefore, most third-party applications will support the new service and the button “Pay with Android Pay”. A new approach will save time because there will be no need to enter bank details, delivery addresses, and other information. Also, services will be able to accept payments through secure web cash desks, mainly for applications that work with online payments and need enhanced protection – e-wallets, card game providers, brokers, etc.
Banking services.
Currently, an exhaustive list of banks that will work with the new system is unknown. However, it is already known that two largest Indian banks are working on it – ICICI Bank and HDFC. According to preliminary data, the launch of the Android Pay service in India is scheduled for the end of the spring. The listed banks will become pioneers, who in practice will test a new application for contactless payments, after which the system will be connected to other credit and banking services – Axis, IDFC, and others.
Security of payments
The issue of security is of concern to many users. A smartphone with an installed application can be lost or stolen, and attackers can use it. Risks are definitely there, but in most cases, they are greatly exaggerated. The system works in such a way that, even after having received partial access, intruders could not cause serious financial damage.
If the smartphone fell into the hands of third parties, then the only thing they can do is to use contactless payments for small amounts, for example, paying for travel in the subway or buying in a supermarket. For any other operations, for example, to withdraw cash from the ATM, additional verification of the user will be required.
To increase the reliability it is recommended to set up your smartphone in such a way that the display was unlocked only with a fingerprint. It is also desirable to set up the application so that payment can be made only with the unlocked display. In this case, even if the phone is stolen, the owner will have time to block the device and the function of payments through the application.
Prospects
According to expert forecasts, cash will gradually go out of circulation. The same applies to the usual plastic cards VISA and MasterCard. Non-contact electronic payments using smartphones will replace them. Centralization of the financial system has several advantages. For ordinary users, the main advantage will be a significant simplification and time savings. After all, pay for goods in the supermarket, dinner in a restaurant, public transport or parking can be literally one touch.
