14 January 2010
A new mobile phone technology called near field communication (NFC) will begin to replace traditional wallets and purses from 2011, according to a new research report published today.
Banks and mobile network operators will both be seeking to make money from
the introduction of the new mobile payments technology, the report
predicts, and are set to go head to head in a bid to gain control of the
market.
“NFC technology will be used to replace everything from credit cards and
loyalty cards to bus and train tickets, library cards, door keys and even
cash,” says Sarah Clark, author of ‘NFC: The Road to Commercial
Deployment’. “What hasn’t yet been decided, however, is who will win the
battle to provide consumers with their new hi-tech mobile wallets.”
The UK, France, United Arab Emirates, Singapore, Taiwan and Korea will be
the first countries to get the new mobile wallets, the report predicts. The
US, Canada, Spain, Germany, Italy, Norway, the Czech Republic, Romania and
Australia are also expected to be early adopters of NFC.
Businesses ranging from retail and travel to fast food, consumer goods,
tourism and entertainment are all expected to be affected by the arrival of
NFC services. Government and educational service providers will also be
impacted by its arrival.
“Decisions made in 2010 will be critical in determining which mobile
network operators, which banks, which industry suppliers and which service
providers become the leaders in the field,” she adds. “Ultimately, only two
or three companies in each country will succeed in building a major new
business providing NFC services to businesses and consumers. The winners
could be banks or mobile operators, or even a new entrant to the market.”
Consumers with NFC-enabled phones will be able to simply touch their phone
to a ‘smart’ poster or product label containing an RFID chip to sign up for
a loyalty programme, collect a money-off coupon, download a trailer for a
new movie, access the latest travel information or go straight to a
product’s website to read customer ratings and reviews and compare prices.
Social networks will also get a major boost. With an NFC phone, you can
friend someone online when you meet them in the real world by simply
touching your phones together. Or touch your phone to a smart poster as you
go into a restaurant to automatically update your Facebook status and get
an offer coupon from the venue as a thank you for telling your friends
you’re there.
Commuters will be able to store their travel pass on their phone and mobile
versions of airline boarding cards, hotel room keys and even passports will
make it quicker and easier to get from place to place. Paying bills will
become much simpler, too. Simply touch two NFC phones together to transfer
money to a friend, buy a drink or pay for a service.
“No more rummaging around for the right change, card, keys or paperwork and
no more texting your location to your friends — with NFC everything can be
handled by your mobile device,” says Clark. “And, of course, NFC is a
highly secure technology. Consumers will be able to instantly lock all the
mobile wallet services on their phone if it is lost or stolen and then get
them automatically transferred onto a new phone as soon as it arrives. They
will also be able to use their phone to make payments even when the battery
is flat.”
Interestingly, this is a subject our digital techno blonde, Claire, covered in depth for WTF magazine in 2008, as Japan has been using this technology for a number of years now – see here for ‘Going Japanese‘ article.
