Tag: near field communication

NFC technology patent boosts Apple mobile payments speculations

| June 11, 2013

Though the device manufacturer is always surrounded by rumors, this is the very latest making the rounds.

One of the most common questions surrounding both NFC technology and mobile payments alike have to do with when Apple will add its name to the competition and how it will go about doing that.

Nothing sparks the rumors more than the filing of a patent, which the iPhone manufacturer has just done.

This most recent patent application was noticed by Apple Insider and has generated dozens of speculations regarding the plans that the company will have for the technology. The patent, which was filed earlier in 2013 but was only just noticed by the public, is called “Method and System for Managing Credits via a Mobile Device,” which doesn’t leave too much mystery as to what how its technology would be used.

The description could be for the use of NFC technology for a system that it describes for mobile payments.

NFC Technology - AppleThe filing details a system that brings digital currency forward in the form of coupons or tokens that have an assigned monetary value. These could be stored within a mobile payments wallet in the cloud so that it can be used in a number of different possible ways. This includes purchases that are made in brick and mortar shops, at online stores, or to pay for the wireless services for the device.

The description of the system suggests that there would be a way for users to receive these tokens through participation in third party advertisements, which suggests that brands could use the service in order to connect with consumers and then reward them for viewing or interacting with forms of marketing content.

It is not yet entirely clear how Apple intends to use this patented service. It does mention a number of different types of mobile payments methods from NFC technology to peer to peer, and even direct carrier billing. That said, this remains only a patent application, which means that while Apple would hold its rights, it is not in any way obligated to actually use them in a launch that it is planning.

NFC technology for smartphone payments are proving disappointing

| June 9, 2013

Gartner has just released research that suggests that the adoption of the technology has held back growth in other areas.

Though money transfers have been booming over mobile, Gartner has just published the results of its latest research which have indicated that the adoption of NFC technology has been adequately poor that it is actually holding back the growth of smartphone based payments around the globe.

They have, however, predicted that mobile money transfers will continue their growth at least through 2017.

Though technology and banking giants had had very high hopes for tap-and-pay and contactless payments over smartphones, when all is said and done, NFC technology has proven to be nothing more than a disappointment over the last while and, according to the report, has hindered the growth of the overall mobile payments market worldwide. At the same time, the report also indicates that there are still some bright spots and there is still some potential for future use by consumers.

The Gartner report said that NFC technology tremendously held back the value of transactions over smartphones.

NFC technology for smartphones disapointingGartner explained that due to NFC technology, the value of transactions completed via smartphone “has been reduced by more than 40 percent throughout the forecast period due to disappointing adoption of NFC technology in all markets in 2012 and the fact that some high-profile services, such as Google Wallet and Isis, are struggling to gain traction.”

The forecasts that Gartner is now making state that NFC technology will now make up only 2 percent of the total transaction value for mobile payments this year and that by 2017, it will represent only 5 percent of the total. It does see that there is the potential for faster growth in 2016 when there is greater penetration of enabled smartphones and contactless readers.

What does seem evident to the company’s analysts as well as to other observers in the industry is that the greatly hyped NFC technology will not be revolutionizing mobile payments as had once been the general belief. It has been facing far too many struggles on a great number of levels both from the side of the devices and the payment terminals to take off at any time in the very near future.