While near-field communication (NFC) technology is increasingly found on smartphones, mainstream use of tap-and-go mobile payments remains frustratingly low. In response to the tepid adoption of mobile payments, carriers are responding by touting NFC’s “side benefits”, according to a Wall Street Journal article, “Pushing Mobile Payments.”
Demos at the recent Consumer Electronics Show served to prime the NFC pump by hinting at what’s next. Verizon demonstrated how a phone could be used to release a deadbolt and replace keys. Research In Motion showed how drivers can synch devices to enable hands-free driving and preferential positioning of seats and mirrors. Other possibilities for NFC-enabled devices: replace office identification cards, act as a virtual ticket, retrieve coupons, link to websites and pair with appliances.
The real challenge for NFC, noted the article, is the lack of infrastructure to make mobile payments make sense; there are only 100,000 NFC readers in the U.S., compared to near ubiquity for credit-card readers. Who pays for the NFC terminals is a predicament that may not be solved for years.
In the meantime, it’s clear that companies with skin in the game must continue to show how NFC technology can be used to simplify and amplify so the idea of mobile payments becomes simply the next logical step. As one CES attendee noted, “Customers are asking for [NFC-enabled devices] and we’ve got to deliver for them. The ecosystem will follow.”