I found a talk with three industry experts about the prospects for NFC payment, via phones or cards, in the US. I posted my notes below the image. In general they all seemed to think that this time is different because of the mobile phone and believe the primary driver of consumer adoption will be the introduction of personalized marketing communications from brands.
In the interview:
- Lydian Journal Technology Editor Patrick Gauthier
- Drew Weinstein, Co-Founder, Sparq
- Charles Walton, COO, INSIDE Secure
I can’t embed the video but click on the picture to go to the site/video.
The Catalyst is Google
1 – NFC is disruptive, comes from developers not from traditional industry players
2 – consumers need a reason to use it which will be the combination of payment and marketing offers.
New phase with veteran CEO at Isis could be a number of valuable things in the market, Isis is a service provider to the carriers.
How will Google, Apple and RIM impact mobile payment?
The phone becomes the interaction point for consumers moving forward, also a personal device in the form of retail loyalty, all consumers have one and it will drive the future interaction which I call microadvertising.
Yes the phone is going to help the argument with merchants, plus with all the cards are moving to NFC, Chase will 100% with their card portfolio and the other banks are following suite. The market will be driven by the ability to bring the delight of the iPhone to payment and merchant services.
Is there a killer app?
The financial services industry wants to pay with cards but things are very different when you throw in the phone. Back at VISA doing POS it was hard to have rich interactions. To be able to run an app on top of NFC is going to be a game changer. The rate of click through on mobile marketing can sometime be 100% higher than in other interactive channels. You can tell that the mobile user is different.
1) follow through of direct marketing
2) paying in the store, not at the check out counter
The killer app is mobile retailing through microadvertising. The eyeballs looking at the phone during the transaction is powerful model for retail marketers.
Its not just Google, the traditional card companies can now be surrounded by your merchant’s value added capabilities, (card guy having a hard time) using a list comparison shopping (ouch) its really about the app in the store plus the ads. You can understand why a bank would be interested in getting on the phone. (It was a choppy as it reads.)
What’s the advantage of NFC over barcodes?
Number of clicks – Red Laser very interesting but you still have to launch the app, NFC is just a touch. Merry Mecker says we are in a period of users experiencing their devices through touch metaphors.
Is there an NFC system that points the way in the US?
i think the us will lead the market, the players, framework of services, primed to lead market
What do you see for mobile payments this year and over the decade?
1 Well more than 50m NFC enabled devices by end of year.
2 Significant dynamic from small companies with pull from big players in developing new applications and channeling new offers
3 There will be a community of consumers doing mobile transactions this year
Chip based payments will be fully saturated. There will be a major change of brand dominance with the emergence of new forms of retailer and smaller devices.
I am equally bullish on the deployment of devices in a market that challenges existing supply chains. Going to be a lively combination of partnerships
Payment systems change every 20 years. The first mobile payments in were in 1990. There will be many changes in the ecosystem with the rise of a active merchant looking to more directly advertise to their customers and actively managing payment and one on one marketing. Merchants will be the focus of change. There will be more devices and apps that will explode in the market. It will be like the web 10 years ago.