Sometimes on phone reviews I read that a certain model, often one released in a Western market, uses NFC for payment. In my country, mobile payments use QR codes so any phone with a camera can use them. Does NFC have any advantage over such a system?
Something else I didn’t see in the comments so far is the NFC allows for unique transaction codes each time and thus doesn’t reveal any information. A static QR code could be “stolen” if it isn’t regenerated each time for security purposes.
Not sure how the system currently works but if the QR code is the same code every time that opens you up to someone just taking a picture of it and scanning it again later to charge you. I’d hope it’s unique each time cause otherwise that’s a huge step back
The system in my country is that the QR code is meant to be public, and contains either your mobile number, or if you want to hide that, a UPI ID (which you can set and can be a random alphanumeric string). But having access to a person’s QR only lets you send money to them. The payment verification happens between the sender and the central database, on behalf of the sender’s bank, and can be done using a PIN / OTP.
For example, I go to a shop and buy sweets. The shopkeeper would have their QR code displayed prominently throughout the shop. I scan it to get their phone number / UPI ID, and then tell the app to send them so many rupees. The central database asks me to verify the payment. Once I verify, both I and the shopkeeper get an SMS saying x rupees was debited / credited. The app can also store transaction history in case there is any confusion later.
If I’m sending money to a friend, I already know their mobile number, so I can bypass the whole QR business and tell the app to just send money to their number.