Tag: nfc mobile device

NFC 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.

Vodafone to launch new mobile commerce application in 2013

Vodafone Australia, one of the country’s leading mobile network operators, has teamed with Visa to launch the Vodafone SmartPass, which will be available to consumers next year. Vodafone has taken note of the growing interest Australian consumers are showing in mobile commerce and is taking steps to provide consumers with new service that align with the demands of customers. Visa is also keen to meet the rising demand for mobile commerce and has been working to develop a platform that consumers can use to make payments with their smart phones.

Application allows for mobile purchases

The Vodafone SmartPass is a mobile application developed for the Android platform. The application allows users to make purchases using the financial information associated with a prepaid account. Though the Vodafone SmartPass can access the information associated with this account, the application does not create the account itself. Consumers will need to attain an NFC-enabled SIM card from Vodafone in order for the application to work properly.

NFC SIM card adds extra layer of security

The NFC SIM card contains a blank account that can be filled with cash from consumers. This is meant to add an extra layer of security to the platform, addressing some of the concerns consumers have had recently regarding the overall safety of mobile commerce. The prepaid account is not capable of drawing money from an existing bank account. As such, consumers will need to manually refill their accounts if they make regular purchases, or they can set up a specific date when their account will be filled automatically, per approval.

Scarcity of NFC-devices may slow growth of mobile commerce

Minor purchases can be made with a simple wave of a smart phone, while larger purchases will require additional authorization. Vodafone and Visa expect that mobile commerce will continue to generate hype and become a more popular practice amongst consumers. NFC-enabled mobile devices are still rare, however, so the growth of mobile commerce may be slowed until these devices become more available to consumers around the world.