The future of contactless payments and mobile banking

Recently, contactless card payment technology has been increasingly used. The level of development of information technology allows you to pay for a product/service with one touch using a smartwatch or smartphone.

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Now you can control your bank account and monitor the contactless payment devices that the user owns through the mobile banking applications on your smartphone. Given this, the question arises of how secure contactless financial transactions are and what future mobile banking is waiting for.

In large cities, paying for purchases through the application on the phone is no longer surprising. Using digital devices, like a smartwatch or even contactless payment rings, you can pay for travel by public transport or a major purchase at a hardware store. Mastercard Company notes that in this form of payment there is an effective international experience. So, according to the company’s mandate, from 1.01.2020, payment terminals in Europe should support NFC contactless payment technology.

The technology has gained wide popularity, which confirms the volume of payments in Europe, which increased by 145% over the past year, says Mastercard. Banks of developed countries offer card issuing services on wearable devices: smartphones, watches, bracelets, stickers, in jewelry rings.


Wireless data transfer – Near-Field Communication (NFC) is a built-in technology in wearable devices that provides contactless payment by debit or credit card connected to the service.

You can implement the technology on leading mobile OS, NFC payment Android, or iOS, a popular service in IT. Security in the financial sector is a very sensitive issue, however, special attention is paid to it, therefore the protection of your data on the NFC ring is similar to that used on a bank plastic card.

In the process of developing the direction of IoT technologies for NFC systems, the market is filled with new technologies and solutions, leading to the creation of more functional gadgets. According to recent statistics, 20% of the US adult population wear fitness trackers or smartwatches. One of the main industries that stimulates the spread of cashless payments throughout Europe is the transport sector and retail.

Protecting NFC cards from financial scams and data theft

Contactless card protection is a major and natural concern that worries an NFC user. Besides, each bank has an individual security system aimed at protecting banking operations. This should be considered when setting up software for NFC and IoT devices.

Using technology Host Card Emulation – HCE, which allows you to reproduce the principle of a bank card on a smartphone, the security module is virtual and located in the cloud. The open architecture of HCE simulates the operation of cards of loyalty programs, products, passes, etc. Using this technology, significantly accelerate the implementation of NFC payment services, since there is no need to coordinate actions with smartphone manufacturers, in addition, many compatibility problems are solved.

Bank Card Application – Mobile Banking Development

Speaking about the possibilities of contactless payment, it is impossible to ignore mobile banking. Adapted financial and banking services applications allow the user to control their accounts on the smartphone. The service of developing a mobile application for a bank is in demand by almost any client-oriented banking institution.

Banking mobile applications for Android or iOs should function correctly on different devices, such as smartphones and tablet PCs, to support wireless connection via Bluetooth and Wi-Fi to contactless payment devices. The implementation of online banking applications quickly pays off due to increased customer loyalty and involvement and cost savings on advertising and maintaining departments.

Functions and benefits for the bank order the development of a mobile application

Mobile banking applications have a very wide range of functions, which are often repeated by the optional site of the bank’s website.

Mobile banking services include:

  • Providing information about the user account in the bank;
  • Generation of statements of accounts and operations;
  • Monitoring of completed transactions;
  • Prompt implementation of money transfers;
  • Contactless payment setup;
  • Payment of various services and goods;
  • Operational communication with banks for the provision of services and other financial solutions;
  • The list of branches and ATMs in any city;
  • Monitoring deposits, cards, accounts and loans;

Unlike Internet banking, the smartphone application has a simplified interface, but a high level of functionality. The development of a mobile banking application allows you to achieve customer loyalty. The Bank closely interacts with users, communicating through push notifications, thereby forming its image personally for everyone. Based on the previous one, promotions and offers can be directed to a specific person or group, and therefore the response of the audience will be higher. Another plus is that the tank monitors the reaction of potential buyers and analyzes the popularity of the new service, correlates demand and prices more efficiently.


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