2011 is the year of mobile aka near field communication (NFC) payments.
Well this year it definitely looks more promising. According to analyst firm Juniper Research, mobile phone payments will reach a critical mass this year thanks to the creation of eco systems uniting hand set vendors, loyalty providers, trusted service managers, retailers and mobile phone operators. In the US, operators have already teamed up to build NFC infrastructure under the Isis alliance. Similar initiatives are on-going in the Netherlands and Korea.
When new technology gets launched we always think about how it will replace existing technology. Take Near Field Communication (NFC) chips for example and the replacement of bank cards by mobile phones with NFC chips.
How will that work?
Well, you walk around the shop, pick up the items you want to purchase, go to the cashier, they scan the items and the till totals it up. You take out your phone and tap it on the Barclaycard branded NFC terminal and the transaction is completed.
This was a very unexpected statement from one of the speakers at the Mobile Keynote at Sibos 2010.
Next time you do a presentation, try the following with your audience.
Ask how many people have a mobile phone. 100% show of hands.
Ask how many people have a smart phone. 50% to 70%.
Ask how many people have more than one smart phone. 10% to 15% (make a note of their names and don’t invite them next time, they’re geeks).
Ask how many people use their smart phone for mobile browsing, gaming, etc, anything other than making calls. 100%.
Then ask how many people do mobile banking on their phone. 3% to 5%.