Tag: nfc technology mobile

NFC technology for smartphone payments are proving disappointing

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.

Proxama teams with Smartrac

Proxoma teams with SmartracProxoma and Smartrac aim to take NFC marketing to the next level

Proxama, a provider of NFC and mobile marketing technology solutions, has announced its partnership with Smartrac, a developer and manufacturer of RFID transponders and inlays. Through this partnership, the two companies aim to showcase the potential of NFC technology in the marketing sector. The technology has long held promise for advertising, but has seen limited use over the years. NFC is most often used in mobile commerce as a way to facilitate mobile payments from smart phones and tablets.

New NFC marketing services coming to brands in 2013

Through this partnership, Proxama aims to work with several popular brands and advertising agencies beginning in 2013. Proxama believes that these brands and agencies could benefit from the use of NFC technology, as it will provide them with a way to engage consumers in an interactive fashion. Smartrac has been experiencing increasing demand for NFC technology solutions from its customers and is eager to begin developing such solutions.

Proxama leverages experience to provide new services

Proxama already has a wealth of experience in using NFC as a mobile marketing tool. The company is expected to leverage this experience to provide brands with powerful solutions that could produce promising engagement opportunities with consumers. Through its partnership with Smartrac, Proxoma aims to provide retailers, advertisers, and media owners with the tools they need to develop dynamic NFC-based marketing campaigns. While such campaigns have been used by major brands in the past, such as 20th Century Fox, NFC-based marketing can often be a hit-or-miss issue.

Lack of NFC-enabled devices may be problematic for some

In order for consumers to interact with NFC marketing campaigns, they must have an NFC-enabled mobile device. These devices are equipped with NFC chips that can decipher the information contained within NFC-based marketing materials. Currently, these phones are somewhat rare, but device manufacturers are working to remedy this issue. With the scarcity of NFC-enabled mobile devices, it is difficult to say for certain whether NFC marketing will be able to provide brands with the reach they need to connect with mobile consumers.