Dubai: Given the number of banks who are eager to hand out credit or debit cards, more consumers are finding themselves using cash less and less – even when making smaller purchases. Going cashless offers a lot of benefits. It eliminates the need to stuff the wallet with thick paper bills and makes shopping more convenient.
A UAE-based bank has taken cashless payment to a higher level. Using the so-called NFC (near-field communication) technology, customers can now ditch their plastic money and use their mobile phones instead, to pay for goods and services. All they need to do is tap their device on a machine, and the transaction is completed.
The contactless payment service, called Emirates NBD Pay, is available to Visa credit and debit card customers. Anyone with an NFC-enabled Android mobile device can avail themselves of the new payment technology and use it to make payments at restaurants, cafes and supermarkets, among others.
According to Suvo Sarkar, senior executive vice president and group head for retail banking and wealth management at Emirates NBD, it is now possible for UAE residents to use the technology given that about 50 per cent of the 100,000 point-of-sale terminals that accept card payments are now NFC-enabled.
“This number is growing rapidly with acquirers working with Card Association in investing in contactless acceptance across the market. We expect that almost every merchant terminal in the UAE will be NFC-enabled in a few years,” Sarkar told Gulf News.
Although NFC has been around for quite some time, Emirates NBD is said to be the first in the Central Europe, Middle East and Africa region to launch a contactless payment solution using Visa’s Token Service technology.
NFC enables the exchange or transfer of data – which can either be photos or contact list – between two devices that are placed close to each other. In other markets, the technology is now increasingly being used for making financial transactions, enabling consumers to use their mobile phones like a credit or debit card.
“Typically, contactless payments are popular in busy retail environments, such as fast food [outlets,] restaurants or cafes, supermarkets and movie halls that value speed and efficiency, especially when it comes to relatively lower ticket purchases,” said Sarkar.
“Emirates NBD Visa credit or debit card customers who have downloaded the Emirates NBD Pay application can make purchases using their Android mobile phone at any of these terminals.”
As with all other digital solutions, there are security concerns being raised regarding the use of mobile phones as e-wallets. Some people say that mobile gadgets are not completely safe to use for payments given that they are vulnerable to hackers, besides physical theft and burglary.
Sarkar, however, said that payment applications on a mobile phone are generally regarded more secure, as a customer can install multiple security layers to protect initial access to his/her smartphone as well as to access to the mobile banking app which is a necessary step to complete payment.
“In addition, transactions that are above Dh100 have an additional level of security as customers will be prompted to enter a PIN, making them as secure as a chip and PIN card,” he added.
How it works:
To avail themselves of the new service, customers need to upgrade their mobile banking app on the Google Play store and link it to the credit/debit card. Once the merchant initiates the payment, the customer simply has to wave his/her smartphone near the terminal to complete the transaction instantaneously.
