Here's how Google Tez defeats NFC-based payments services

Google Tez has been the newsmaker this week, bringing UPI based payments portal to a majority of smartphone users. While it may sound very similar to services like PhonePe, Google differentiates its services by mentioning the presence of AudioQR.

AudioQR is Google’s proprietary technology and uses sound to ensure a secure payment portal. The technology utilises ultrasonic sound to send verification codes between two devices, thus sending money to someone in an exact way one does through NFC-based payment portals.

All the sender and the receiver have to do is opt for ‘Cash Mode’ from the app’s home page and let the technology do its magic. The AudioQR feature will authenticate the transaction and you will end up paying your friends in a convenient and fast way. Tez works in a similar fashion to Apple Pay, Samsung Pay and Google’s own Android Pay, but without needing additional hardware.

Until now, seamless payments apps relied on Near Field Communications (NFC) sensors to make payments to other device or Point-of-Sale (PoS) machines. NFC was and is only available on expensive smartphones and thus limits the scope of these services to these devices, putting the new technology out of scope for the lesser fortunate ones.

Tez was designed to work on every smartphone, whether expensive or entry-level. Every smartphone can generate and capture audio through its microphone and speaker setup. Thus, using ultrasonic audio to replace NFC will make direct wallet-based cashless transactions easier.

Tez will require users to connect their bank accounts directly and any payment made through Tez will directly deduct the balance from the bank account — no hassle of topping up a separate wallet. Google Tez currently works with all major banks, such as Axis Bank, HDFC Bank, ICICI Bank and State Bank of India. It will also work with those banks that support UPI-bases payments services.

(source)