The Year Ahead for NFC: Major M-Commerce Rollouts Unlikely Until 2013

By: 
Dan Balaban

2012 was going to be the year that the new era of NFC-based mobile commerce had finally arrived–with Google Wallet rolling out widely, mobile operators in the U.S. and Europe making significant inroads with their own mobile wallets and big Asian m-commerce players generally commercializing NFC, as well.

But as 2011 comes to a close, a different picture is emerging, one that indicates this long-awaited era of tapping phones to pay and conducting a range of other m-commerce services will likely have to wait for another year.

To be sure, there is progress on all fronts, with just about all major handset makers and mobile platform providers adopting the technology and beginning to release phones, and the first NFC commercial launches by telcos, along with Google, already taking place.

This premium content is only available to subscribers.
Article has about 4530 words.

To Keep Reading, Subscribe Today

Get access to all premium content and the world’s first global newsletter devoted to the NFC and contactless markets by subscribing to NFC Times, the most authoritative source for news and analysis in the industry.

Subscription Options

Article comments

 
patrickmeyer Dec 23 2011

Excellent of the USA/Global summary.
As an expert in mobile/social and marketing innovation for Fortune 1000 brands, and a partner at NFC marketing/media leader Thinaire...I thought I would provide a bit more:
--4th Marketer/Mega-agency: high interest and commitments going into place: pilot in 1st half; roll-out plans for 2nd half and 2013.
--There Are 2 Spheres Of NFC: e.wallet & Mktg/Media Interaction. The press focus and the competition is all around Google Wallet and e.wallet player alliances. Yet, an estimated 20 times the activity is going to come from "Deeper Engagement & Total Activation & Peer-to-Peer/Social Sharing". This is where Thinaire has been focused for years with its system. This is also where marketers are focused...Thinaire/NFC in media, at retail, on products, and eventually e.commerce.
--QR Distraction To NFC...The Migration Path: Marketers are blindly moving to QR yet not thinking about its challenges and the UE (user experience) attached to the QR. Sometimes QR's are connected to a non-mobile optimized website. Yet there is an approach we are using that is getting traction, results and metrics: Thinaire Tap Or Snap. This gives the users a side by side option to go NFC or QR. It helps QR to cover while NFC phone adoption comes (est. 40% of smartphones by 2012 in USA)
--Leadership Marketers: Not all marketers get it. We see leadership marketers laying out a biz/tech roadmap and NFC is part of the fusion of mobile, social, retail. Select agencies are moving with these CMO directives.
Here is a Kraft/Horizon Media/Thinaire effort that just previewed in Chicago with Tap Or Snap.
http://bit.ly/sKZRJq
Keep the great insights coming. NFC will surprise many on 2012 progress.

Please register or login to post a comment.

HEADLINE NEWS

In-Depth: In-Car Payments Gears Up but Takes Time to Get Rolling

NFC TIMES Exclusive Insight – Car manufacturers, payments networks and platform providers continue to make deals as they gear up for the much-anticipated arrival of in-car payments–which would enable motorists to buy gasoline, pay for parking and purchase food for takeout, all from their dashboards.

Golden Globes Trophies Get Provisioned Like Payments Wearables to Ensure Authenticity

NFC TIMES Exclusive – The 76th Annual Golden Globes held Sunday featured the usual share of Hollywood celebrities preening for the cameras, showing off their new designer gowns and latest nips and tucks, while holding their trophies high if they won.

Japanese Megabank Mizuho Plans to Launch New Digital Currency Soon for Mobile Payments Service

NFC TIMES Exclusive Insight – Japanese megabank Mizuho will reportedly move forward with its planned launch of a new digital currency to enable QR code-based mobile payments in stores and for funds transfers–with plans to cut the fees merchants will pay to accept the new payments scheme, as compared with credit cards.

More QR Code Payments Services Planned for Japan, Home of Original Contactless-Mobile Rollouts

NFC TIMES Exclusive Insight – Japan, the first market globally to adopt contactless-mobile payments, in 2004, with a technology similar to NFC, will see its two largest convenience store chains introduce their own mobile payments services this year–both using bar codes or QR codes instead of NFC.

Analysis: Commonwealth Bank’s Agreement to Support Apple Pay Could Mark Turning Point for Apple’s Bank Recruitment Efforts

NFC TIMES Exclusive Insight – With its capitulation last week to Apple and agreement to participate in the tech giant’s payments service, Australia’s largest financial institution, Commonwealth Bank–which had once vowed not to support Apple Pay–shows that Apple is making headway with major banks that had once resisted supporting the NFC wallet.

Major Bus Company Stagecoach Finishes Contactless Rollout as UK Moves Toward Transit Ticketing Interoperability

NFC TIMES Exclusive Insight – The UK’s largest bus operator has announced that it has completed its rollout of open-loop payments acceptance on 7,400 buses in the country, declaring itself the “single largest contactless transit merchant in Europe outside London.”

In-Depth: Australian Transit Authority Rolls Out Open-Loop Payments After Lengthy Trial

NFC TIMES Exclusive Insight – Transport for New South Wales, Australia–the transit authority that oversees trains, buses and ferries in and around Sydney–decided to roll out its open-loop payments service to all train services following an extensive trial.

Canadian Transit Authority Introduces Low-End Wearable for Closed-Loop Payments

NFC TIMES Exclusive Insight – When Vancouver-area transit authority TransLink introduced open-loop fare payments last May, it was clear that the agency was not planning to phase out its closed-loop Compass Card anytime soon.

In-Depth: Swedish Hybrid Watch Brand Kronaby to Launch Payments Wearables with Innovative Provisioning System

NFC TIMES Exclusive – In one of the first implementations of its kind, Sweden-based hybrid smartwatch brand Kronaby plans to enable personalization of tokenized payment cards over the air using a Bluetooth connection to what is essentially a passive contactless chip in its watches.

Analysis: Apple Again Touts Apple Pay Growth, While Still Not Releasing Details on Transactions

NFC TIMES Exclusive Insight – Apple again reported a tripling of transactions for its payments service, Apple Pay, during its fiscal quarter ending in September, while noting other achievements. But the growth is believed to be off of a relatively low base, and four years after launching the payments service, Apple is still not releasing detailed numbers about its transactions.

In-Depth: Chinese Payments Players Accelerate Rollouts of Transit Fare Payments

NFC TIMES Exclusive Insight – While mobile payments are rolling out slowly at metro gates and aboard buses in the West, Chinese mobile payments players are accelerating deployments of their services that enable consumers to tap–or more likely scan–to ride.

Major U.S. Networks Promote Online Commerce Spec, Seeking to Keep Digital Transactions on Their Networks, but Not All Merchants are On Board

NFC TIMES Exclusive Insight – Major U.S.-based global networks, including Visa, Mastercard and American Express–hoping to keep transactions on their networks as more commerce goes online and digital–amplified their push for the Secure Remote Commerce specification, which is being drafted by their jointly owned payments specifications group, EMVCo.