NFC was losing steam in last couple of years after initial hype. There were half hearted attempts but as soon as Apple announced iphones with NFC, the entire segment looks like as if it’s on steroids right now. The boardrooms are busy these days in any company connected to NFC terminals or payments.
A new report from Dublin-based Research and Markets finds this is the first time when there is significant momentum to make contactless wallets happen. Even if Apple pay does not succeed as much as being talked about, it would have a lasting impact on EMV and NFC being adopted in the industry. Everybody will benefit from it including other wallets.
Apple’s NFC-powered payment system, Apple Pay, will let users of iPhone or Apple Watch to pay in thousands of stores accepting contactless payments. NFC Payments have been around a while, but Apple Pay has the potential to make widespread adoption of digital wallet payments a reality at last.
NFC technology implementation driven by mobile payments solution requires NFC enabled equipments at both consumers and retailers end. There seems to be continued theme of moving payments process from Cash to Cashless (Cards) to Contactless technology over the last decade. This theme has been the primary driver for contact less technologies such as NFC, BLE and Bar codes. At consumer end, requirement manifests introduction of NFC chipsets in consumer devices such as Mobile phones (especially smart phones), Tablets and others.
Currently, almost all major device manufacturers, including Apple have begun to put NFC chipsets in their major models. Mobile payments may have gone from a nice-to-have to a must-have today, thanks to Apple’s announcement of its Apple Pay platform. NFC payments aren’t new, and have existed in the Android ecosystem for several years. The question is how will Apple change the NFC landscape? Apple has an enormous installed base, many of which will eventually upgrade to NFC and Apple Pay enabled devices.
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