Tag: nfc technology

Study predicts the rise of NFC technology in mobile commerce

| March 28, 2013

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.

Asian Pacific markets embracing mobile payments

| March 23, 2013

Mobile Payments Asia Pacific MarketMasterCard reports that mobile payments are being well received in Asian markets

Mobile payments are becoming more popular in the Asian Pacific market, according to MasterCard. Access to smartphones and tablets is growing throughout these markets, making it possible for more consumers to conduct mobile payments than ever before. Many consumers in these markets consider mobile commerce a more convenient way to purchase products, which has lead to a growing demand for mobile payment services and platforms that accommodate mobile shopping.

Consumers favor mobile commerce for online shopping

According to MasterCard, 40% of online shoppers in Hong Kong, South Korea, and Singapore made purchases using their mobile devices in the past three months. Approximately 54% of Indonesian consumers made mobile payments over the same period, with China and Thailand accounting for 53% and 51% respectively. Mobile payments are becoming increasingly common throughout the Asian Pacific due to the proliferation of mobile technology.

Asian consumers are no stranger to NFC technology

MasterCard notes that NFC technology and its use in mobile commerce is relatively common throughout the region. According to the company, 70% of consumers throughout the Asian Pacific are aware of NFC technology and the role it plays in mobile payments. These consumers noted that they would be willing to adopt NFC-enabled mobile devices to participate in mobile commerce within the next 12 months. Digital wallets, which typically do not use NFC technology, are also quite popular with consumers, though the majority of consumers in the Asian Pacific noted that they were more interested in SMS-based mobile payments.

Mobile commerce continues to grow globally

Mobile payments are expected to continue growing in popularity throughout the Asian Pacific. Other markets around the world are experiencing similar results in their mobile commerce sectors as smartphones and tablets become more accessible for consumers. MasterCard is currently involved in mobile commerce initiatives in several countries and through these initiatives is attempting to establish a firm grasp on the mobile payments sector.