Credit companies pressure US retail industry to upgrade point-of-sale terminals
U.S. retailers are facing a deadline from American Express, Discover, Visa, and MasterCard, to make upgrades to their point-of-sale terminals to make them more compatible with mobile commerce. The deadline is set for October 2015, giving retailers plenty of time to invest in NFC-enabled terminals, but few retailers have shown enthusiasm in diving into the world of mobile commerce. Some retailers claim that mobile commerce is not yet at the point where it can be considered viable.
Mobile commerce is gaining modest ground in US
Despite concerns regarding security and efficiency, mobile commerce is growing in the U.S., backed heavily by financial groups and the telecommunications industry. These parties are investing heavily in NFC technology and the infrastructure needed to make mobile commerce a success. Part of this effort is encouraging the retail industry to make updates to its point-of-sale technology to foster the expansion of mobile commerce.
New terminals may mean better financial security
Retailers are tasked with upgrading their sales terminals to be equipped with NFC technology so as to better serve consumers with NFC-enabled smart phones and mobile devices. These devices can be used to make payments for goods and services, but only if they have an NFC terminal to interact with and finalize the purchase. Sales terminals are also expected to make up the bulk of the security features the mobile commerce industry needs to thrive. As such, these terminals may help placate the fears consumers have been having regarding the safety of their financial information.
Retailers still unconvinced of the popularity of mobile commerce
The retail industry has been disinclined to throw major support behind mobile commerce and prepare for the widespread use of NFC technology because of the relatively high upfront cost associated with such an initiative. Though there have been signs of mobile commerce catching on with some consumers, many retailers claim that there is not enough evidence to justify dumping funds into upgrading technology that is able to meet the needs that consumers have now.
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.
