Contactless and near field communication seem to be the flavors of the month for two study groups, which recently released reports about the technologies. Findings from San Francisco-based Javelin Strategy & Research claim that contactless will become mainstream for payment card transactions leading eventually to mobile payments and NFC capabilities. Another report, this one from Ireland-based Research and Markets, says NFC has yet to take off because of the lack of phones that can handle the new technology plus lack of incentives for carriers or banks to get involved.
Javelin Strategy’s report is called: Contactless Strategy & Forecast, and highlights how the promotion of non-network payment products will drive acceptance, thwart competition and pave the path for what card networks and issuers consider to be the eventual goal–mobile payments. In turn, the technologies and strategies described in this report will lead to radical changes in personal finance for every consumer, merchant and financial institution.
“Tap-and-go contactless payments will pave the way for cell phones and handheld computers to become ‘electronic wallets,’ packed with consumers’ payment and merchant cards, coupon offers, even medical records, family pictures and more,” said Javelin’s Founder and President, James Van Dyke. “But consumers won’t benefit until the primary players — card networks, financial institutions, mobile carriers, merchants and handset manufacturers — work together toward a unified, simple solution that lets everyone win.”
Javelin’s latest research shows that progress is slowed because there isn’t sufficient incentive for merchants and wireless carriers to make essential investments that will enable contactless infrastructure development and the evolution to NFC-based mobile payments. If industry-wide cooperation occurs, Javelin’s projects that 57 million consumers will be using chip-embedded credit cards to make contactless payments by 2013, which is more than double the 24.8 million in 2008 and will be bolstered primarily by expansion of contactless products into gift cards and private label cards.
The Research & Markets report comes to the same conclusion. While NFC has attracted the attention of the largest telcos, transport companies, banks and others and new trials are frequently announced all over the world, it has yet to take off, because the telcos have failed to seek, according to the company release about the report, “a mutuality of benefit with others in the value chain. That has meant that very few NFC enabled phones have been made available, banks are cautious about letting their cards be mimicked by the phones and transport operators are cautious about the ticketing option being loaded.”
Both reports are for sale. Contact Javelin for further information at inquiry@javelinstrategy.com. For Research & Markets’ report, go here. ![[end]](/resources/bullet/archive-4.gif)
