Card readers are currently the standard payment method for card purchases. But that dominance may be coming to an end. Banco Inter has announced a solution in which the transaction is carried out even more simply: simply tapping the card against the smartphone.
The card must have NFC (Near Field Communication), the contactless payment technology. However, this should not be an issue: the majority of new cards currently being issued already feature this technology.
Nubank, Neon, and Inter have quickly embraced the new development. In the case of Banco Inter, the launch of this new payment method is scheduled for the first quarter of 2020.
NFC technology represents a major shift for the market. This is because we are living through what has been called the "card reader war," in which an ever-growing number of options and competitive prices are emerging.
Stone was a startup that was born with this solution and today holds a billion-dollar market capitalization, having recently gone public on Nasdaq and entered into a partnership with Grupo Globo to create a new company in this sector. The startup followed a path similar to PagSeguro, which also successfully completed its IPO.
This market is also stirring the major banks. Itaú operates through Rede and has zeroed out the advance payment fee for customers who also chose it as their banking institution. GetNet, for example, belongs to Santander, and Cielo to Bradesco.
Now, this war may no longer be solely about who offers the lowest advance payment fee, interest rate, or card reader subscription cost, but also about who provides the most convenient and comfortable options for the customer.
Card readers have been shrinking in size, gaining Wi-Fi and 3G connectivity, yet they remain a physical device that merchants must manage. With a smartphone, making a purchase could be as effortless as paying with a QR Code — something already routine in China, for example, but one that has not yet fully arrived here.
And you — what do you expect for the future of this "card reader war"?
Source: Startse