Blackberry’s EMEA Director of Marketing, Tim Hodkinson declared that, “2012 will be the year of NFC.” At which point, everyone thought to himself: ‘what is NFC and are we going to need Arnie to battle it?’
NFC stands for Near Field Communication, a short-range wireless technology that you most likely unwittingly use today. The key fobs you swipe to get into your office uses NFC. So does that contactless credit card you use each morning to get your balanced nutrition at McDonalds or Starbucks.
NFC devices can be used with contactless payment systems in combination with things like Google Wallet – a virtual wallet that stores credit card information. Germany has already trialed a NFC ticketing system for public transport using NFC.
Now imagine that your credit card, your key fob, your business cards, your bus pass and even your car keys are simply one device: your mobile phone. No more rooting around your wallet for the right credit card or clawing through your purse for your office keycard. With Blackberry pledging to have every device launched in 2012 configured for NFC as standard (and Apple following suit) you can guarantee that 20-somethings at watering holes everywhere will be more wary of the classic in-to-the-toilet-phone-fumble.
The UK has more than 50,000 swipe-and-pay terminals right now. Transactions are mostly limited to small-ticket items, for things under £15. However, Blackberry believes that larger scale commerce will become commonplace using linked credit lines on your mobile device. Industry experts, Forrester Research predicts that commerce on NFC-mobile devices will reach $31 billion globally by 2016.
Major players like Visa, MasterCard and Lloyds TSB are partnering with phone powerhouses like Samsung, RIM and Apple to develop many NFC-enabled devices. Mobile service providers like O2, Vodafone, T-Mobile and Verizon are all exploring standardized payment platforms as well. Hodkinson says, “You will see cobranded activity with us and the mobile operators communicating how NFC can be used for things like payments and advertising.”
In addition to acting as your credit card, Blackberry is testing the ability to swap contact info, videos and photos by simply tapping two phones together. This will make pulling a girl’s digits on a night out with the guys almost 100% foolproof. No more texting Claire to say how great it was to meet her only to have her reply that her name is ‘Holly.’
Mass adopting of mobile wallets offers brands a chance to be at core of consumer purchase decisions. Brands are already developing NFC loyalty schemes, price comparison services and of course, display ads tailored to a users’ shopping habits. But is the average Joe really ready to have EVERYTHING tied to his phone? Perhaps we’ll find out in 2012.
Posted By: Jay Andrews, Senior Account Manager
