The right place for NFC

Five problems for:

www.billingviews.com

Near Field Communications

(NFC)No Future Currently

…and one solution

NFC – wrong place at right time?

• The hype around NFC as the foundation of the future success of mobile payments is flawed. So, where does intelligent, close proximity syncing live in the eco-system (as more and more purchases go online and away from stores)?

Copyright 2012. BillingViews. All Rights Reserved.

Thesis

Number one:Security is not fixed. The very thing that makes NFC unique – the 10 cm range – is its Achilles Heel. An NFC device can be used to relay information from devices without any special software or hardware. There are no records to track and analyze – only air.

NFC as a payment cornerstone will not work if:


http://www.billingviews.com/news/mind-the-gap-more-threats-to-nfc

Number two:• The benefits of NFC are not articulated. The current

messages of convenience and speed are flawed. It is not more convenient, it is only marginally faster and it is not clever to have all your financial information on one device. One possible killer argument: it is a lot cleaner than a credit card terminal.



http://www.dailymail.co.uk/health/article-1346026/Cash-machines-dirty-public-toilets.html

Number three:• Handsets do not appear in numbers, soon. Predictions

of 80 million handsets during 2012 are being heralded as a sign of success. Compared to the overall number of mobile phone shipments, this number is a laughable 20% for a market that will only succeed on mass market adoption.



http://imsresearch.com/press-release/35_Million_Handsets_in_2011_Marks_Breakthrough_Year_for_Mobile_NearField_Communications&from=all_pr

http://www.businesswire.com/news/home/20111027007129/en/Strategy-Analytics-Global-Handset-Shipments-Reach-390

Number four:• Players do not commit. If Visa, PayPal, Google and

others really want NFC to succeed, then they need to say so. NFC needs a champion and a clear strategy. Brands, telcos, payments providers and internet leaders will all make more money out of other technologies – so why should we believe in NFC?



http://www.gomonews.com/paypal-says-mobile-payments-to-hit-3-billion/

Number five:• Terminals are not everywhere, soon. Announcements

will continue throughout this year about retail chains signing up to NFC. Big retail, big deal. Large retail stores only account for $1 in every $8 spent. What about the rest? NFC has to be a slam dunk for the rest to invest.



http://connectedplanetonline.com/bss_oss/news/nfc-and-the-merchants-of-menace-1129/

The solution:• Let NFC fade into the background of intelligent wireless

infrastructure and let other verticals articulate the benefits. With so much attention on the payments solution, one mistake will cause untold bad press.


The conclusion:• The full potential of NFC is in other verticals:

NFC + M2M = a (telco driven) smarter planet.

For the next chapter – see the next edition of the TM Forum’s Inside Revenue Management.


Near Field Communications (+M2M) – the grass may greener...

Personal tracking

Healthcare

Security

Telematics

Inventory management

Travel

…many more

Near Field Communications – the grass may greener...

Alex Leslie, Publisher


NFC as the cornerstone of mobile payments?

http://www.billingviews.com/

The right place for NFC

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