Tag: NFC-enabled devices

Study predicts the rise of NFC technology in mobile commerce

NFC Technology on the riseNFC technology beginning to gain more traction in mobile commerce

NFC technology has begun to lose some of its luster with consumers in regards to mobile commerce, but that does not mean that the technology is going away any time soon. Though many consumers have reservations concerning the use of NFC technology in mobile commerce, NFC remains one of the cornerstones of mobile payments. The technology enables mobile devices to conduct transactions for goods and services and helped expose people to the concept of mobile commerce. Despite the importance of the technology, NFC-enabled mobile devices are still quite rare. This may soon change.

Study shows that more NFC-enabled devices are incoming

A new study from ABI Research, a leading market research firm, suggests that the number  of NFC-enabled devices around the world will surpass 500 million in 2014. The study predicts that at least 285 million NFC devices will be shipped around the world this year, with heavy shipments being seen in large markets like the U.S. and some parts of the Asian Pacific. Mobile device makers are currently the strongest supporter of NFC-enabled devices and are expected to labor intensely to show that these devices can be useful, especially in the realm of mobile commerce.

Galaxy S III helps promote NFC and shed light on the challenges it faces

Currently, the most popular NFC-enabled mobile device is the Samsung Galaxy S III. This smartphone is equipped with NFC technology that has been lauded as an ideal way to share digital content among consumers. The fact that the smartphone can be used to participate in mobile commerce has received relatively little attention since its launch last year. The Galaxy S III has, of course, been used for mobile payments, but it also represents the challenges that device makers have with promoting the mobile commerce capabilities of NFC-enabled devices, namely raising awareness and encouraging consumers to actually pay for goods using their smartphones or tablets.

NFC technology may not be ideal for mobile commerce

The study from ABI Research shows that device makers are ready to embrace NFC technology, but mobile network operators may have more trouble supporting the technology and its use in mobile commerce. NFC technology has no inherent security features, as it acts simply as a transmission technology capable of sending and receiving digital information. Therefore, the security measures needed to keep consumers safe are the responsibility of device makers and mobile network operators. Network operators have, thus far, shown little interest in incorporating significantly more robust, and more expensive, security measures in order to support NFC technology.

New mobile commerce service to link Japan and South Korea

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.Mobile Commerce in Japan and South Korea

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.