Mobile Payment Transactions: BLE or NFC?

 

The mobile payments and retail industries have been buzzing on the debate of which data transfer technology is best suited to carry out mobile transactions: BLE or NFC. On one side, companies such as PayPal and Apple are promoting BLE beacons to carry out contactless mobile transactions. On the flip side, Google, as well as payment giants like Visa and MasterCard are backing NFC mobile payments through Host Card Emulation (HCE). Clearbridge Mobile compares the benefits of both data transfer technologies.

Bluetooth Low Energy

BLE has a few advantages. It is available on the majority of mobile phones. Almost all iOS and Android devices (as well as emerging platforms) support the technology. BLE also provides freedom. It has the potential to eliminate line-ups, giving customers the freedom to pay anywhere in-store.

Near Field Communication

NFC has significant advantages over BLE. For one, NFC technology has been in the market longer than BLE. As a result,  POS terminals have been incorporating NFC terminals due to EMV adoption (Chip & Pin). NFC also has lower transaction costs as the POS terminals can accept NFC taps as a “Card Present” transaction. NFC is also more secure than BLE because of the shorter distance the transaction occurs – making if difficult for hackers to spy on transactions taking place.

 

With it’s convenience, BLE technology may be able to carve out a niche market for itself in “grab & go” environments. BLE can also be used for non-payment scenarios such as indoor customer journey mapping. However, with regards to mobile payments, NFC has significant advantages that retailers cannot avoid. It’s level of security, increasing adoption and lower transaction costs make NFC a compelling choice.