Market research firm Yankee Group is remaining confident in NFC technology, despite a recent survey showing 35% believe it will be made obsolete by other new payment technologies.
According to Fierce Mobile, a further 23% in the same survey believe that NFC is too cumbersome and expensive for merchants to implement.
So why does Yankee Group think NFC is not destined to be the next Betamax? Simply put, it’s a game-changer.
“NFC has one thing Betamax never had: a compelling differentiator,” said Yankee Group Senior Analyst Nick Holland. “Its tap-and-go concept is a game-changer. By contrast, most non-NFC solutions require consumers to launch an app, optically scan, enter a PIN, etc. NFC eloquently does away with all that, making the user experience simpler, more pleasurable and universal. In other words, it makes money truly mobile.”
Holland added that the infrastructure for NFC is coming into place, with major players VeriFone and Ingenico adding NFC support to their payment terminals. In addition, the U.S.’s mandated migration to EMV chip technology for debit and credit payments by 2015 will create even more NFC-enabled points of sale.
“To speed the transition, all players must telegraph standard NFC use by applying the NFC Forum N mark to all NFC terminals, handsets, tags and devices,” added Holland. “Also, card networks, banks, MNOs and hardware vendors must work in unison to create a positive and compelling case for merchants around NFC, particularly underscoring its long-term benefits.”
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