NFC technology in Mobile payment market: How will it affect you?

There is a significant role of NFC technology in mobile payment market. Lets discuss how Google’s adoption of this technology will benefit you and what the future of NFC will hold for us.


Chaotic times seem to be coming in near future but still many players in mobile market do acknowledge that long term viability can be attained through creating partnerships.

The Big players

The CTIA enterprise and association sure has some major upcoming themes which include the idea of a digital wallet and creation of opportunities by making the smart-phones which are capable of making payments on the move. The highly prominent panel discussions such as nfc technology in mobile payment market, which are being helped currently are searching for further prospects and avenues for mobile payments.

There are a lot of opportunities associated if the digital wallet is wedded with the discounts, reward cards, promotions and better targeted advertising and the companies duly recognize this as they are no longer constraining themselves with only getting a share of the mobile transaction and want to move ahead in quality aspects also.

Google has partnered with Mastercard and Sprint Nextel for promoting nfc technology in mobile payment market. This shows that the wallet initiative is a major priority for the firm. There are other players in this field and the three major wireless carriers have formed a joint venture which is named as Isis. Isis will form the backbone of nfc technology in mobile payment market from next year onward. The world’s largest payment enterprise VISA has decided to go alone by building its very own digital wallet.

Many other players have decided to apply their moves in this area. The introduction of own-in-store payment system by Paypal is one step in this direction. As of now you have to use the card, but the facility will be available soon on the mobile phones as well.

There are many players in this area which have different perspectives and hence a shake-up is inevitable. New alliances and partnerships are also bound to follow suit.

The NFC or Near Field Communication

The NFC can be termed as the lynch-pin technology where the future of mobile payments seems to be headed. By using this technology, you will be able to make a purchase by simply waving your card or phone in front of the new checkout terminals. The NFC technology has already been installed in a few cellphones and cards and is likely to penetrate new point-on-sale-terminals.

Different range of strategies is being followed by different firms with regards to introduction of NFC for the critical masses.

The American Express enterprise growth head Mr. Schulman says that the total adoption of the NFC technology in mobile payment market will take around two to four years. The company has therefore partnered with Verizon Wireless and is focusing on its own Serve digital wallet. Services like making a payment by entering the phone number rather than the separate account number, will be offered by the enterprise in the near future. The partnership with Verizon will be launched in the month of November and the expanded capability set will be launched in the next year, as per Schulman.

A more skeptical approach is followed by Laura Chambers who is the senior director of the mobile division of Paypal. She believes that NFC technology in mobile payment market will replace the cards in the coming three to five years. She also added that another technology might affect the prospects of NFC. Chambers further adds that NFC technology in mobile payment market is complicated to implement but is a very smooth technology. Paypal will soon be conducting its pilot program this year and will launch a payment system with 20 national retailers in the next year. It would not be using the NFC in the initial phases of the program, as many carriers currently are.

Paypal is planning to focus on the transactions which are made using a cellphone and is also working to better the service of person-to-person money transfer. A survey conducted recently by eBAY shows that the people who use a smartphone and a tablet are more likely to make mobile purchases than the people who only own a smartphone.

Google driving adoption of NFC

Google wants the adoption of NFC technology in mobile payment market to be done as soon as possible. The wallet program launched by the company relies on the NFC enabled cell phone, the NEXUS S and the sprint wireless heavily. Google is likely to launch the expanded capabilities which go beyond the already present tap-to-pay function. Google is also pushing hard its partners to release the android phones which are equipped with the NFC chip.

The future holds bright for the mobile transaction technology and we are likely to see the replacement of cards by mobiles sooner than anticipated. The mobile handsets with NFC chips will be available soon on all platforms and OS and are currently being manufactured by leading mobile makers. The technology is likely to enhance the capability of mobile handsets in a significant way.


Rebecca is a blogger by profession. She loves writing on fashion and luxury. Beside this she is fond of books. She recently bought a book on spring florals from a book fare. These days she is busy in writing an article on Industrial Design style.

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  1. Kim Fraiser Reply

    I have been using CSI globalVCard app to make all of my mobile payments. It’s the safest and most secure way for my business to make payments on the go. The app is available on android, blackberry and itunes. Any of my employees with a tablet or smartphone can use it too!

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