On Track Innovations announces $2 million order for NFC terminals
On Track Innovations, a leading developer and marketer of NFC-enabled products, has announced that it has received a $2 million order for its NFC payment terminals. These terminals are able to facilitate mobile transactions between a business and consumer at point-of-sale through the interpretation of digital information transmitted by an NFC-enabled mobile device. The demand for these terminals has been growing quickly in recent months due to the expansion of mobile commerce and the growing availability of NFC-enabled devices.
Company plans to deliver systems throughout 2013
On Track Innovations plans to deliver its NFC terminals to its customers during the latter months of 2012 and throughout 2013. The company notes that the $2 million order it has received represents orders from several companies around the world, all of which are preparing for the arrival of NFC-enabled devices and the growth of mobile commerce. The terminals will allow these companies to accept mobile payments from platforms supported by MasterCard, Visa, American Express, Discover, and other financial institutions.
On Track Innovations has already delivered 50,000 units this year
Earlier this year, On Track Innovations announced that it had delivered more than 50,000 NFC terminals to customers around the world, with many located in Europe and the U.S. Both regions represent the strongest growth of the mobile commerce industry, with the penetration of NFC-enabled mobile devices being highest in these markets. These markets have proven the most attractive to mobile commerce companies because of the high interest consumers seem to have in mobile payments.
Mobile commerce growth driving demand for NFC terminals amongst businesses
The companies that have ordered NFC terminals from On Track innovations have not yet been disclosed. The identity of these companies may be revealed at a later date, at the discretion of On Track Innovations. For now, the order represents a sign that the mobile commerce industry is establishing a stronger presence around the world and pushing companies to prepare to serve consumers that are eager to participate therein.
Docomo and KT Corporation team for the sake of mobile commerce
Japan’s Docomo, a leading mobile network operator, has teamed with South Korea’s KT Corporation, an information and communications business, to develop a new mobile commerce system based on NFC technology. The mobile commerce system will be designed for use in both Japan and South Korea and will facilitate payments for goods and services through the use of a mobile device. The initiative is expected to help boost consumer exposure to mobile commerce and NFC technology exponentially.
Japanese consumers to use Cashbee service
The mobile commerce system will allow Japanese consumers with NFC-enabled smart phones to make payments in South Korea without having to worry about money changing. This will be accomplished through South Korea’s extensive Cashbee service, which already allows citizens of the country to participate in mobile commerce. The service comes from the KT Corporation and its accessibility to Japanese consumers is considered the first practical step of the partnership between the two companies.
Lack of NFC-enabled devices could slow plans for mobile commerce development
Docomo expects the Cashbee service to be available to Japanese consumers in the first half of 2013. After the service becomes widely available, both Docomo and the KT Corporation will begin introducing new, cross-border services concerning mobile commerce, marketing, and mass-transit ticketing, all based on NFC technology. The two companies believe NFC technology could help bring a wide variety of convenient services to consumers in both countries, but the lack of available NFC-enabled mobile devices may delay the duo’s plans.
Demand for NFC-enabled devices reaching new heights
Despite the growing popularity of mobile commerce and NFC technology, mobile devices capable of conducting mobile transactions are still rare. Many new devices, such as Samsung’s Galaxy S III, are equipped with NFC technology, but there are currently not enough to meet the demand of consumers interested in mobile commerce. Without the adequate supply of NFC-enabled mobile devices, any plans concerning the widespread use of mobile commerce services is expected to find some difficulty gaining traction with consumers.
