Skip to main content

New NFC-Based Proximity Mobile Payment

Eighty-six percent of industry stakeholders believe Near Field Communication (NFC) based proximity payments will be adopted, and it will happen with a collaboration model, bringing together banks, mobile operators, merchants, handset manufacturers and other service providers, according to the Smart Card Alliance Contactless Payments Council.

In a survey conducted of leading stakeholders in the mobile and financial payments industries, the Council considered four different business models for proximity mobile payments using NFC-enabled phones and interviewed executives at key organizations on critical questions pertaining to the success of each model.

"With the obvious market opportunities behind proximity mobile payments generally accepted across the industries involved, the purpose of this research was to get a sense of all of the different stakeholder visions for how the mobile and payments ecosystems could come together to make these payments a reality," said Randy Vanderhoof, executive director of the Smart Card Alliance.

Survey responses indicate that, with so many players involved in the ecosystem for proximity mobile payments, the simple fact that no one is making the first move to mass deployment presents a large barrier for adoption.

Respondents believe a third party in the role of trusted service manager needs to make a bold move to orchestrate the activities of all the key players, such as final selection of handset and chip standards, merchant enablement, standards for certifying and deploying secure payment applications, and development of a model for revenue-sharing.

Popular posts from this blog

AI Infrastructure $100B Investment Drives Growth

The growth trajectory of artificial intelligence (AI) enterprise applications continues to accelerate, and its impact on global IT infrastructure spending is also remarkable. The recent market study by International Data Corporation (IDC) provides compelling evidence of AI's explosive growth and implications for the Global Networked Economy . By 2028, global investment in AI infrastructure is projected to surpass the $100 billion mark, underscoring the technology's pivotal role in shaping the future of business and society. Artificial Intelligence Infrastructure Market Development This growth is not a sudden phenomenon but rather the result of sustained investment over time. The AI infrastructure market has experienced double-digit growth for nine consecutive half-years, with no signs of slowing down. In the first half of 2024 alone, organizations increased their spending on compute and storage hardware infrastructure for AI deployments by 37 percent year-over-year, reaching an...