Last Updated on August 4, 2022 by
The recent innovative headways are pushing organizations to embrace computerized and robotic solutions. This road to technological advancement has given countless advantages to organizations and customers. Presently, organizations are able to communicate with their clients through targeted emails instead of physical mail, additionally adding to the speed and security of the information. In recent times, clients go for businesses that don’t expect them to physically visit their work location for any issue. They want all the services to be provided online. This implies that organizations should go for digital systems and technologies giving up conventional techniques. One of these is the application of NFC technology.
In this article, we will go through the basics of NFC mobile technology and why it is adopted by NFC verification solutions?
The Pain Points of the Financial Industry
Financial institutions are continuously affected by identity theft and fraud. This is due to the inefficient and unreliable customer onboarding process. The manual identity authentication procedures are time-wasting and cumbersome and the and the digital processes are not providing foolproof customer verification, either. Criminals easily find loopholes in ID verification checks and get away with counterfeit or stolen ID information. However, these concerns are readily addressed by digital IDV providers utilizing NFC technology.
Near Field Communication
NFC technology draws from RFID to connect two devices that are installed with NFC chips. It can transmit information up to the range of 10 cm. Whether it is media files or written messages, NFC can take care of it seamlessly. It is used in various mobile applications. But, it is commonly known for making contactless mobile payments and digital identity verification.
The Utility of NFC Payment Verification
NFC is increasingly being employed in point of sale terminals enabling cardless payments with increased swiftness and security. For in-store payments, an NFC-based point of sale terminal is set up for the following reasons.
- It is exceptionally better than other RFID technologies as it does not require any sort of configuration.
- The contactless mobile payment can be processed through a single tap.
- It is more efficient and quicker than card-based payments.
- A substantial amelioration of the flow of the payment transfer process.
NFC Identity Verification vs Conventional Verification Processes
As we have examined before, NFC-based verification can be utilized for checking identity information incorporated in chip-based ID documents. To put it simply, the NFC scanners check the authenticity and originality of the ID documents of an individual. Nations around the world are increasingly issuing NFC chip-based ID cards that are ICAO 9303 compliant.
Traditionally, documents were checked by reviewing them from behind the screen. It involved a verification official and it was up to their judgment to check for spoof attacks. Even the AI-based digital solutions are sometimes shaky in impeding identity fraud. So, it all comes to the security checks added by the NFC technology that makes the customer onboarding process completely foolproof.
The Walkthrough of NFC Verification
The step-by-step procedure of NFC identity verification is as follows.
- The photo of the NFC-installed identity document is uploaded
- The system scans the MRZ code on the e-ID card
- The customer taps his phone on the e-ID card
- Information from both sources is compared for authentication
- NFC biometric verification step can also be added in the process to check the liveness of the user
Pretty much every user of a smartphone (Android or IOS) has access to NFC technology. Certain reports claim a fifth of the world’s population has NFC-installed smartphones. That is why NFC verification solutions are increasingly integrating this technology into their solutions. NFC ID verification ensures a decrease in the abandonment rates during customer onboarding and an increase in customer experience.
Moreover, the digital ID verification services incorporated with the NFC functionality are soothing the pain points of businesses. And the businesses have hit a jackpot with the arrival of near-field communication verification technology. They have increased the number of customers onboarded and a significantly lower number of financial losses because of ID fraud.