Smartphones are replacing cash

How to pay for the purchase using the same technology as contactless payments, not letting go of the mobile device

Смартфоны вытесняют наличные деньги

Not all people can afford to go to supermarkets and restaurants with no money. But some do without cash and even Bank cards, causing a light tension on the faces of the guards. New means of payment – smartphone: he can easily deduct the required amount from the account, as when calculating the credit cards. You simply hold it to the terminal, and payment is carried out.

A Ukrainians two ways of paying for purchases via mobile devices. The first settlements in the NFC, the second QR-codes. They each have their own advantages and disadvantages. Better know how to use both methods, because in some cases they cannot be avoided.


For all its economic backwardness of the Ukraine were the leaders in terms of development of contactless technology. According to a study by Mastercard, over 70% of online users are willing to use smartphone for payments. And importantly, the entire infrastructure for contactless payments is ready. For example, more than half of POS-terminals in retail outlets recognize NFC payments.

In the last year in Ukraine was launched global service for contactless payments, Google Pay, to open access to the NFC device owners with Android operating system. More recently, the same possibility has appeared for the owners of iPhones that can make payments via Apple Pay. All you need is to download these applications and add to them the Bank card: enter the number, expiration date, your data. Almost all the major banks have already adapted their cards under these services. Including PrivatBank, Oschadbank, Ukreximbank, TA, Alfa Bank, FUIB, etc.

With QR codes payment is carried out approximately under the same scheme. The only difference is that for payment you need to scan the code printed on the packaging or on store shelves, and then confirm the payment. However, calculations using QR codes is not very popular due to the limited number of banks that created the necessary services. While this possibility is available only for the clients of PrivatBank and TA. But in the near future will compete with them and other financial institutions.

Not the Android

The lion’s share of smartphones in Ukraine operates on the Android system. According to various estimates, more than 80% of the total number of mobile devices. Such a high popularity is due to the inexpensive prices on smartphones with this operating system unlike the very expensive iPhones. In addition, work on Android phones of many famous brands: Samsung, LG, Xiaomi, Sony, Huawei and many others.

Смартфоны вытесняют наличные деньги

Ironically, the availability of devices on Android was one of the major impediments for the development of NFC payments. The problem is that the special NFC chip, which stores credit card data and which encrypts the data and starts the payment processing, normally installed on the smartphones of the middle and high price category.

To be honest, when choosing a smartphone, the NFC function is not for the vast majority of potential buyers determined. Much more interested in other metrics, CPU performance, memory capacity, image quality, etc.

For example, one of the inexpensive smartphones with NFC function – Black Land rover V1600 cost about 3400 UAH. Very few people know what the manufacturer and even less what quality it phones. And considering the price, most likely, the choice will be made in favor of the smartphones more well-known brands. Of the popular brands of the cheapest smartphone that is capable of contactless payments, – Sony Xperia L2. Its price – 5500 UAH. For the same amount you can buy smartphones that lack NFC, but superior in other criteria, with much more powerful processors.

At the same time, calculations using QR codes is available to the vast majority of smartphones. And it is possible that this technology will get in the coming years, an additional incentive to its development.

Смартфоны вытесняют наличные деньги

To zakodirovatsia

There is a perception that QR codes technology is more promising than the NFC. In some countries, for example in Japan or China, it is wildly popular. China is already a country called QR codes. The settlements smartphones using this technology is embedded everywhere.

Leading payment systems – Visa and MasterCard – in the past year presented their projects allows you to bind the card to the smartphone and perform calculations by scanning the QR codes. For these purposes, uses MasterCard’s digital platform Masterpass wallets. At the end of March Taskombank launched a service allowing customers to pay using QR codes via Masterpass.

The advantage of QR codes is that they allow you to make payments both online and offline. That is, the QR code can be considered not only on the seller website, but also on the packaging of its goods. While the NFC technology means that two devices equipped with NFC-chips are in contact with each other, exchanging information. In other words, when paying using NFC requires physical presence of the buyer (his smartphone) and the seller (the reader).

And most importantly – the technology of QR codes omnivorous. That is, no matter what smartphone is used for calculations and what it is operating system. Requirements to technical parameters of mobile small. Everything you need – camera, which can be used to read the code.

Another serious advantage of the sellers do not need to use additional equipment for the organization of calculations using QR codes. Whereas for NFC payments necessary terminals or other reading devices that support this technology.

At the same time, it is difficult to understand how calculations using QR codes can be used, for example, in cash desks of supermarkets, when you need to pay in one payment group of products. Here is the NFC feels more comfortable. In turn, the NFC definitely will not use it for payments in online shops or in outlets that are not equipped with the necessary terminals. For this reason it is mostly popular among residents of large cities.

Further – more

Soon smartphone owners will have new opportunities to make payments using devices. For example, Samsung has been taking steps to develop its own payment solutions, in fact, creating your mobile Bank Samsung Pay. This service allows payment not only in the NFC, but using the MST (magnetic secure transmission). That is, the smartphone behaves as a payment card with a magnetic strip. Accordingly, the calculations can be done in stores whose terminals do not support NFC.

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