In the ever evolving world of mobile technology, there seems to be a new trend vying for mainstream status each week. Some come and go without a second glance (the Microsoft Kin anyone?), and others change the way we use devices in our daily routine. NFC (Near Field Communications) is vying to become the next de facto radio in your mobile device’s arsenal. NFC’s practical uses include mobile payments, contact-less sharing, and embedded interactions.
What is NFC?
NFC is a standard for devices to establish radio communications by tapping or bringing them within close proximity (typical range is about 4 centimeters). The standard is based on existing RFID (radio-frequency identification) technology, but allows for two way communication between the endpoints (as opposed to RFID’s one way transmission capability). Passive communications allow a powered device (phone) to read or write to an unpowered endpoint (such as a sticker embedded in a poster or product), while active communications can be made between two powered devices.
What are the uses of NFC?
Smart phone equipped with an NFC radio enable users to replace their wallet for mobile payments, swap contact information, and can replace identification or public transport cards. Android devices can be set to send contact information by default, or use Android Beam to share the content active on the originator’s screen. This allows a user to ‘share’ content within an app with another user; if the receiving user doesn’t have the app, they will be directed to the Android Market page for that app to download. Other implementations allow users to easily pair devices using other radio protocols. For example, if you purchased a new Bluetooth handsfree kit that supported NFC, you could tap the kit to your phone to initiate the connection instead of hunting for the default PIN code in the user manual. Multiplayer gaming with apps can initiate a WiFi connection via NFC to identify the players’ devices.
Product integration and targeted marketing provide another avenue for engagement with mobile devices. Embedded NFC tags could provide product information for shoppers without the need to wait for an available sales associate. Others could provide support links to download product documentation or contact customer care via phone or email. The possibilities are quite vast, and can be combined with QR codes in the near term to facilitate future proof campaigns.
The real driving force that will bring NFC to the mainstream: mobile payments. NFC enabled smart phones can be used to replace the credit cards in your wallet and facilitate instant transactions via a tap. Google has already begun trialing their mobile payment system, titled Google Wallet, in a few test markets. It is currently compatible with Mastercard’s PayPass terminals, in addition to the test terminals that Google has sent out. Three of the four major carriers in the US (Verizon, AT&T, and T-Mobile) are putting their weight behind their own mobile payment service called ISIS. This is where the biggest push for mobile payments will come from, as the telecoms vie for a share of mobile payment processing profits. You can be sure if the three of the biggest players in pushing and advertising mobile devices want you to use NFC, they will ensure every OEM includes it in their smart phones.
When is NFC coming?
The good news is, NFC is already here! Several high-end Android handsets from the third quarter of 2011 onwards have NFC. This includes Samsung’s Galaxy SII family, the Nexus S, the Galaxy Nexus, and the HTC Amaze 4G . While this is still only a small portion of the mobile market, the presence will continue to expand throughout 2010. CES brought the announcement of several products integrating NFC, and just last week Microsoft announced that Windows Phone 8 (slated for third quarter 2012) will have full NFC support. BlackBerry OS added NFC support with version 7.1 available on a handful of the Bold and Curve devices.
The only big player not mentioned here is Apple, who have always been tight lipped about their future plans. Despite their secretive plans, the overwhelming chatter in the industry is that the iPhone 5 will ship with NFC. Apple has already filed for a handful of patents related to NFC, and numerous partners’ executives have all but confirmed it with statements like Mastercard’s Ed McLaughlin:
“I don’t know of a handset manufacturer that isn’t in process of making sure their stuff is PayPass ready…Um, there are…like I say, [I don't know of] any handset maker out there. Now, when we have discussions with our partners, and they ask us not to disclose them, we don’t.”
Apple already hired an expert on NFC as their Mobile Commerce Product Manager back in August of 2010, and many developers have already begun prepping their NFC based applications, hinting that Apple will make the big announcement at WWDC (World Wide Developer Conference) this year.
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