What are NFC and QR Code Payment? All You Need to Know about Mobile Payment

With the increasing popularity of smartphones, many people start to go out with only a mobile phone, because the phone can not only make phone calls and play games, but also can be used for payment. The most common tools are Apple Pay, Google Pay, Alipay, WeChat Pay, etc. Mobile payment can be divided into two types: NFC payment and QR Code payment.

NFC payment

NFC (Near Field Communication) is used for contactless identification and interconnection of two electronic devices. It allows two electronic devices to send and receive data within a few centimetres of each other. Nowadays, most smartphones have built-in NFC functions, which can be used to complete contactless mobile payment. Apps supporting this function include Apple Pay, Google Pay, Samsung Pay, Huawei Pay, etc. 

Customers only need to add their credit or debit cards to the wallet app (e.g. Apple Wallet, Google Pay, Samsung Pay, Huawei Wallet, etc.) on their smartphones in advance. After that, even if the phone is not connected to the network, they can still use it to make NFC payments at stores with contactless payment logo.

In fact, NFC payment is more secure and less prone to card theft than normal credit card payment, because NFC payment requires double verification with fingerprint or face recognition to confirm the cardholder's identity before the payment can be made.

QR Code Payment

QR Code (or “two-dimensional code”) payment is another popular mobile payment in recent years. Customers can complete the transaction by showing the payment QR code to the merchant through their mobile wallets, such as AlipayHK, WeChat Pay HK, UnionPay Cloud QuickPass, BoC Pay, etc. Unlike NFC payment, QR code payment requires an Internet connection to obtain the QR code after entering the payment password. 

Currently, AlipayHK, WeChat Pay HK and other wallets can be linked with not only credit cards, but also bank accounts, so that even people without credit cards can pay with their phones. Moreover, mobile wallets will launch payment offers from time to time through collecting stamps to redeem cash coupons and other cash rebate offers, thus attracting a lot of users. 

The popularity of mobile payment not only eliminates the need to carry a physical wallet, but also the hassle of dealing with changes among other concerns. The biggest appeal might be the rebate offer of electronic payment tools, which is the reason many consumers began to use the technology in the first place.

Comparison between common types of mobile payment

Below are the most common digital payment tools in Hong Kong:

Payment method	NFC payment	QR Code payment	QR Code payment	QR Code payment	NFC payment
Debit method	-Link with credit cards or debit cards (Visa, Mastercard, American Express, UnionPay, etc.)	-Link with Visa, Mastercard credit cards or bank accounts -Top up AlipayHK wallet with cash at convenience stores	-Link with Visa, Mastercard, UnionPay credit cards or bank accounts -Top up WeChat Pay HK wallet with cash at convenience stores	-Link with UnionPay credit cards or other debit cards -BoC Pay users can link it with BoC bank accounts simultaneously	-Add Octopus in Apple Wallet, Samsung Pay or Huawei Pay
Benefits	-Smartphones can still access NFC payment without a network connection -Can enjoy credit card points/cash rebate	-Can enjoy credit card points/cash rebate, as well as exclusive discounts from designated AlipayHK merchants and points reward program	-Can enjoy credit card points/cash rebate, as well as exclusive discounts from WeChat Pay HK designated merchants and points reward program	-Can enjoy credit card points/cash rebate, as well as discounts from UnionPay Cloud QuickPass designated merchants -selected UnionPay credit cards can earn extra cash rebate when paying through UnionPay Cloud Quickpass	-smartphones with Apple Wallet, Samsung Pay or Huawei Pay installed can still access NFC payment without a network connection

 ^Some cards may not support mobile payment. Please contact the issuing bank for more details.
*Information above is for reference only. Please refer to the websites of relevant financial institutions or service providers for the latest product and service details.

Consumers usually choose their payment method for the exclusive offer. Therefore, as a merchant, you can't just accept a single payment method – You need a one-stop smart POS payment collection solution! 

Merchants can collect payments via digital payment service providers. Through their payment collection system, customers can pay using different payment methods. They act as a link between the merchant and the bank by providing the former with different ways to collect payment, transferring the money to the merchant's bank account and charging a handling fee based on the merchant's transaction amount. 

Take digital payment service provider KPay as an example. Their smart POS terminals are not only equipped with USB chargers and support data SIM card or Wi-Fi connection to the network to improve device mobility; also, the terminal supports 15 types of payment methods, in addition to accepting magnetic stripe card swiping, chip card insertion, and other physical card payment methods.The terminal also supports Apple Pay, Google Pay, Samsung Pay, Alipay, WeChat Pay, BoC Pay, UnionPay Cloud QuickPass, etc. This allows customers to choose the most convenient and fastest payment method for a better payment experience.

KPay’s mega welcome offer, with $0 merchant discount rate

If you are planning to apply for a POS terminal, you can't miss KPay's latest welcome offer! We are offering new merchants $0 merchant discount rate for a limited time ($30,000 of merchant transaction fee rebate), plus up to $5,100 in cash and promotions*! For details of the offer, please click here.

KPay’s POS terminal payment service has transparent fees, $0 rental and installation fee, in addition to transfer to bank as early as the 3rd day after clearing (T+3) to ensure your cash flow.

KPay also provides comprehensive support services, including tutorials, free POS terminals maintenance and a merchant reporting platform to help them expand and stabilise their source of customers while enhancing their competitiveness in the industry. KPay's KConnect all-in–one merchant business management platform, integrates a variety of tools and services to minimise the hassle of merchant operations; it also transforms operation data into practical information to meet merchants' needs for business development.
 

*Terms and conditions apply.