Picture this: you’re waiting in line at your favourite store and finally it’s your turn to pay. You’re all ready to make your purchase, debit card in hand, when the cashier asks you a simple question:
“Do you have a rewards card?”
You know you have one, so you think for a second about whether or not you remembered to bring it with you. Maybe you did, but and maybe you didn’t. Feeling awkward about making the rest of the line wait behind you, you reply with “no, sorry” or “I don’t have it with me” to avoid digging in your wallet for a card you’re not even sure is in there.
Enter Near Field Communication (NFC) technology.
NFC technology has the power to essentially replace a consumer’s wallet and everything in it, including ID, credit cards, and gift certificates.
Google was one of the first companies to bring near field communication to the mainstream with their debut of the Google Wallet App in 2011. The first version of the application worked with allMasterCard PayPass and Visa PayWave merchant locations, and was met with rave reviews by consumers. This spring, Google announced an upgrade featuring an integration with Google Waller and Gmail, allowing users to send money through e-mail attachments.
Presently, the technology is only available in the US, but it’s already caught the world’s attention and prompted other large companies to jump on board the NFC train.
For instance, as of 2013, Guiness is starting a new mobile marketing campaign using NFC technology in pubs and bars allowing consumers to tap their smartphone on the Guinness’s harp logo on newly installed “magic behind the gates” draught founts, for a chance to win a free pint of beer. This will allow Guinness to interact with customers, monitor activity and reward customers with offers, vouchers, competitions and content.
By using NFC technology, vendors can enhance the payment process by providing value-added services such as couponing, loyalty programs, advertising, and digital gifts. In addition, NFC-based payments are attractive for both merchants and customers, as this is a new technology with several factors, such as reliability, how essential it is perceived to be, security, and user friendliness that need to be addressed.
And to think, these examples represent just the tip of the “NFC iceberg”, in addition to the realm of mobile payments, a number of pipeline applications are in the works that will merge NFC with the worlds of public transit, healthcare, and schools. The possibilities are endless, and dare we say inevitable fixtures in the way we go about our day to day business.
Considering the technology’s developments in just these past few years, and the rate at which consumers have been catching on, we at TechNavio are confident in forecasting the Global NFC SIM market with a whopping CAGR of over 90 percent for the next two years, ultimately reaching US$ 817.4 million by 2015.
