Step 1: Make sure your phone meets software standards

Check if the software on your phone is Play Protect certified.

If you modified your phone, make sure it meets security standards. Google Pay might
not work in stores with phones that:
Run developer versions of Android.
Are rooted, run a custom ROM, or have modified factory software. Due to security
risks, Google Pay doesn’t run on these phones.
Are untested and haven’t been approved by Google.
Have an unlocked bootloader.
To fix these issues, with the exception of Play Protect certification and rooted
phones, reset your phone to factory settings.

Step 2: Find out if your phone has NFC

Open Settings Settings.
In the “Search settings” bar, type “NFC.”
Tap and turn on NFC.
If you can’t find NFC, your phone can’t make contactless payments.
Step 3: Make sure Google Pay is set as the default payment app
Open Settings Settings.
Tap Apps & Notifications and then Default apps.
Your Default apps might be under “Advanced.”
Tap Tap & Pay.
Set Google Pay as the default app.

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NFC is a method of wireless data transfer that allows smartphones, laptops,
tablets, and other devices to share data when in close proximity. NFC technology
powers contactless payments via mobile wallets like Apple Pay, Android Pay, as well
as contactless cards.

NFC is similar to radio-frequency identification (RFID) technology, but is limited

to sharing data with other devices that are within about four inches. That’s why a
consumer paying with their mobile wallet must place their device close to the
contactless payment reader.

NFC is also similar to Bluetooth technology, but differs in that NFC doesn’t
require device discovery or manual syncing like Bluetooth. It also uses less power
than Bluetooth.

NFC can be used three different ways:

Peer-to-peer: Two NFC-enabled devices can establish a connection and share data

Read/write: An active device, such as a phone, picks up data from a passive device,
which does not have the capability of reading information itself

Card emulation: An NFC device can be used like a contactless credit card
The third use is the one that is most applicable to merchants because it allows for
the acceptance of mobile wallet payments— which is our focus here.

FACT #1: Accepting NFC payments is easy and convenient

When EMV chip cards first came out, one of the concerns was the introduction of a
new step in the checkout process. The process of “dipping” (and waiting) was a
little awkward for consumers at first. Regardless of how long it actually took,
consumers felt like the dipping process took longer.

Jump ahead to contactless mobile payments, and voilà— consumers can skip the dip.
For smaller transactions, contactless payments can skip the swipe, sign, and PIN as
well. Contactless payments typically take less time than chip card transactions.
And since consumers usually hate to wait, even for seconds, less time per
transaction means happier customers.

Digital wallets are a natural extension of the trend of the smartphone to become an
all-in-one device that meets the modern consumer’s every need. The prospect of that
consumers leaving their wallets behind and carrying only their smartphone to pay
for purchases, is convenience in action.

FACT #2: Mobile payment technology is designed to be stable, safe, and secure
Like EMV chip cards, mobile wallets are more secure than magnetic strip cards.
While a phone is still vulnerable to theft, as long as the passcode or biometric
protection has been activated, the device will be virtually useless to thieves.

With mobile wallets, a consumer’s payment data is exposed only once, when the card
information is entered into the mobile wallet. This information is then encrypted,
so that every time the consumer taps their mobile wallet for payment at an NFC
enabled terminal, “virtual” payment data (meaning not real card information) is
sent from their phone to the payment device. The full card number is not exposed.
When this virtual data is passed to the payment terminal, it’s often immediately
encrypted by the merchant’s payment processor using Payment Card Industry (PCI)
validated methods.

To summarize, data involved in an NFC mobile wallet transaction has two layers of
protection: 1) the device itself, and 2) data encryption. If you think about it,
this is a lot safer than carrying around a physical card which could easily be
stolen and used.

FACT #3: Paying by smartphone is the new consumer normal

The explosive growth in mobile technologies may drive new consumer expectations,
which are higher than ever. Whether you call it the “Amazon effect” or something
else, what smart merchants are learning is that whatever any given consumer
considers the “best” level of price and service, that’s what they expect from every
merchant.

Futurists, cartoonists, and movie makers have long offered many versions of what
commerce might look like a century from now. Today’s reality is in many ways beyond
what even the most progressive thinkers imagined. Consumers across the globe have
demonstrated not only their comfort with mobile payments, but their insistence on
having every available option at checkout. Paying by smartphone is, simply, the new
consumer normal.

FACT #4: Accepting mobile payments often deepens customer engagement

Merchants and consumers are on the same page when it comes to payments: both want
transactions to be fast, easy, secure, and convenient. Beyond the clear benefits of
increased ease of use and enhanced security, accepting mobile payments helps build
and maintain a trusted link with customers.

Merchants also benefit from NFC because it provides an opportunity to more

effectively integrate customer loyalty programs into payment processing. For
example, customers can redeem a coupon immediately with the tap of their phone.

NFC loyalty programs can also help merchants gather useful analytics on their
customer base and locations. Based on where coupons are used, merchants can
determine most profitable times of day, or the locations that receive the most
traffic.

FACT #5: The future is commerce-on-the-go, and the future is now

Commerce-on-the-go is the new reality. The smartphone is an ambassador of
convenience and universal translator in a world of mobile commerce. It’s time for
retailers to seize the moment and create consistently amazing experiences that
delight customers.

Consumers hate to wait, and they hate lines. They value speed and personalization.
Accepting mobile payments addresses key customer pain points and opens doors to
deeper levels of engagement. The ability to pay by smartphone can make customers
happy. Happier customers are often more loyal customers. Happier customers can help
fuel the success of your business.

Fact #6: Payments under an “honor-all-wallets” scenario

Businesses that accept card payments are no doubt familiar with the card network’s
“honor-all-cards” policy, whereby merchants that accept one type of major branded
credit card must accept all brands.

With the rush toward accepting mobile payments, there have been rumblings from the
card networks about an “honor-all-wallet” policy that would work in a similar
fashion. Such a rule would force merchants that accept mobile wallets, like Apple
Pay and Android Pay, to accept any type of card network-branded mobile wallet.

Merchants take issue with the potential rule for obvious reasons. Imagine if
Walmart, for example, was forced to accept an Amazon Pay payment, or Target had to
accept Walmart Pay? A chief concern is the potential for non-bank wallet providers
(which could include competing merchants) to view the transaction data and use that
information to steal customers.

Still, at this point, the point is somewhat mute. So far, no official policies
regarding honor-all-wallets have been released by Visa, Mastercard, American
Express, or Discover.

Fact #7: NFC equipment is priced right for small merchants

To accept mobile wallet payment, merchants need a payment terminal and reader that
are NFC-enabled, and a payment processing plan that accepts mobile wallet payments.
Plenty of options are available. In the US, 88% of all POS terminals shipped by the
end of 2017 had NFC capability, and NFC-equipped POS terminals are forecast to
reach 112.3 million globally by 2022.

NFC readers and terminals are usually also priced right for the small business
merchant. Costs range from as little as $49 for a simple NFC reader, to $149 or
more for a terminal that also reads chip and magstripe cards.