What is BLE mobile payment?

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Bluetooth Low Energy (BLE) has become a buzzword,
with both PayPal and Apple, announcing the use of
this technology. An important question doing the
rounds is whether BLE can be a substitute for NFC
in the mobile transaction space. In this context
it is important to first define what BLE really
is. As its name suggests, while classic
Bluetooth allows for wireless streaming of data,
BLE focuses on the same with very low power
consumption. This is made possible owing to three
factors

• Increased sleep time
• Quick connections
• Lower peak power

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The primary differences between BLE and NFC are
While BLE and NFC are both short range data
transfer technologies and both work wirelessly,
BLE operates at a much longer range which allows
for increased convenience
Data transfer rates are higher in case of NFC
While NFC allows one-to-one data exchange, BLE
allows for multiple connections
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With regard to mobile transactions, BLE offers
three payment scenarios
Under this format, the virtual card is stored on
a handset which is connected through BLE to the
POS terminal which in turn is connected to a
payment network.
In this scenario, data is stored in the cloud.
Through BLE, the handset connects to a POS
beacon, which in turn connects to the cloud. This
format allows for personalization, whereby when a
customer enters a store, his mobile device
connects with the BLE beacon and his picture and
name is sent to the cash point. The transaction
does not require a card and is done on account of
facial recognition by the cashier and a
confirmation given by the customer.
This scenario involves data on the handset
itself, which connects over BLE to the POS which
in turn is connected to the payment network. This
even allows customers to scan products on their
own.
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Compared to NFC, a major advantage offered by
BLE has is freedom of payment. It enables
connection to a POS anywhere in the store. NFC on
the other hand requires proximity to the POS.
Also a BLE beacon works well in enabling a
retailers mobile application to deliver
customized offers to the customers phone when
the consumer is in the vicinity, a feature that
NFC cannot provide.
The other advantages offered by BLE include
It is more secure than BLE primarily because it
works over a shorter distance thereby making
spying not possible
It requires less investment in POS technology
It is compatible in a contactless environment
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Summary
In short, while BLE has its own share of
advantages primarily on account of the payment
freedom it provides, NFC scores on areas such as
cost as well as security. While NFC remains the
technology of choice as of now, BLE can go a long
way in enhancing the customer experience and also
paving the way for personalization, which is
indeed the future of consumer engagement.
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Thank you

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