Nfc is critical for mobile commerce


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Nfc is critical for mobile commerce

  1. 1. ©2011 by EliNext GroupWhy NFC is Critical for Mobile CommerceThis year we hear more and more about NFC and itsusefulness for mobile commerce and mobile developmentindustry. In fact it’s becoming a popular way to makepayments in commerce. Now all the biggest mobile phonemanufacturers want to integrate NFC into their products.NFC is likely to become a must-have feature for a mobilephone.
  2. 2. ©2011 by EliNext GroupSo what’s NFC? And what benefits does it bring for us?Near field communication, or NFC, allows to make simplifiedtransactions, data exchange, and wireless connections between twodevices in proximity to each other, usually by no more than a fewcentimeters.Do you think this is a disadvantage of this technology? Not at all,on the contrary, because of that, this technology is both safe andeffective. The maximum distance is about 20cm, which ensuresthat no unauthorized communication takes place. It scores overvarious shortcomings of Bluetooth such as high powerconsumption and security concerns. This form of communicationalso works when one of two devices is not powered.Besides, NFC is an open standard in the software developmentindustry and has no security protocol so the security of it is thecombination of many security standards that a service provider has.You don’t have to worry about security with this technology.Currently many smartphones on the market already featureembedded NFC chips that can send encrypted data through shortdistance (“near field”) to a reader located, for instance, next to aretail cash register. Shoppers who have their credit cardinformation stored in their NFC smartphones can pay for purchasesby waving their smartphones near or tapping them on the reader,rather than using the actual credit card. A smartphone or tablet with
  3. 3. ©2011 by EliNext Groupa NFC chip can make a credit card payment or serve as keycard orID card. NFC devices can read NFC tags on a museum or retaildisplay to get more information or an audio or video presentation.NFC can share contacts, pictures, songs, applications and videos.NFC expands e-Commerce opportunities, increases transactionspeed and accuracy, while reducing staffing requirements. Usuallyonly a personal identification number (PIN) is required forpayments over $100 (in Australia) and £15 (in UK). Below there isa list of payments that NFC is being used for already.• Mobile payment: A NFC device can make a payment like acredit card by touching a payment terminal at checkout or avending machine when a PIN is entered.• PayPal: PayPal has plans to start a commercial NFC servicein the nearest future.• Google Wallet is an Android app that stores virtual versionsof your credit cards for use at checkout when a PIN is used.• Ticketing: Tap a NFC device to purchase railroad, subway,airline, movie, concert and event tickets. A PIN is required.• Boarding pass: A NFC device may act as a boarding pass,reducing check-in delays and staffing requirements.• Point of Sale: Tap a SmartPoster tag to see information, listento an audio clip, watch a video, or see a movie trailer.• Coupons: Tapping an NFC tag on a retail display orSmartPoster may give a user coupons for products.• Tour guide: Tap a passive NFC tag for information or an
  4. 4. ©2011 by EliNext Groupaudio or video presentation at a museum, monument or retaildisplay (much like a QR Code).Now you understand why NFC is so critical in mobile commerceand for mobile development industry as a whole. It bring us manyuseful conveniences and the most important is that it is a far moresafe and effective than other similar technologies. I believe thatNFC will be our “e-wallet” in mobile payments in a day not so far.
  5. 5. ©2011 by EliNext GroupELINEXT GROUPWebsite: http://www.elinext.comEmail: info@elinext.comBlog: http://software-topics.comFacebook: officeMarina House, Adelphi QuayWaterford, Republic of IrelandPhone: +353 (51) 347 477Belarus Development Center155b Bogdanovich St.220040 Minsk, BelarusPhone: +375 (17) 237 53 65Vietnam Development Center37A Phan Xich Long St.Ward 3, Phu Nhuan DistrictHo Chi Minh City, VietnamPhone: +84 (8) 3995 6849Suggested citation: EliNext Group.2011.“Why NFC is Critical for Mobile Commerce”<>