Skip to main content

Mobile NFC for Creative New Marketing Applications

As the number of mobile phone-based payment users grows worldwide to over 375 million in 2015, the demand for devices enabled with near field communications (NFC) -- the underlying communications technology behind many mobile payment solutions -- will grow as well.

According to the latest market study by In-Stat, the adoption of this technology will push global annual shipments of NFC chips to over 1.2 billion by 2015.

NFC is a set of technologies that supports wireless communications between two devices in close proximity to each other. An NFC link is very quick to set up, enabling small amounts of data to be exchanged over short distances.

This capability is unique compared to other wireless technologies, and it makes NFC an ideal solution where quick exchange of small amounts of data is paramount to a quality user experience -- such as payments made using a mobile device.

“As the costs of NFC chips decline, and NFC radios are combined with other chip functions, the cost to integrate NFC into handsets will be outweighed by the benefits,” says Allen Nogee, Research Director at In-Stat.

The growth of combo chips will also allow NFC radios to piggyback on technology that already has significant penetration in the market. For example, Bluetooth radios, which currently have 100 percent market penetration, can be integrated with NFC radios, making the choice to include NFC easy for OEMs.

Today, the focus of the NFC market is shifting from payment applications that can be enabled by NFC, to creative new marketing applications.

With this new focus, In-Stat expects that some retailers will begin pilot programs -- in the latter part of 2011 and into 2012 -- that incorporate "smart posters" into their signage and outdoor advertising strategies.

In-Stat's latest market study findings include:
  • NFC will reach 30 percent global penetration by 2015.
  • Global annual shipments of NFC chips will grow at a CAGR of 129 percent over the forecast period.

Popular posts from this blog

$4 Trillion Digital Transformation Upswing

As a C-suite leader, you're constantly bombarded with investment opportunities. In today's large enterprise arena, few initiatives hold the same potential as Digital Transformation (DX). Yet, securing ongoing buy-in from the board and other key stakeholders hinges on a clear understanding of market momentum and the return on investment that DX promises.  A recent IDC worldwide market study sheds valuable light on this critical topic. Let's delve into some key takeaways and explore what they mean for your organization's tech strategy. Digital Transformation Market Development The IDC study describes a market surging toward investment adoption maturity. Worldwide spending on DX technologies is forecast to reach $4 trillion by 2027, reflecting a compound annual growth rate (CAGR) of 16.2 percent. This exponential growth signifies an opportunity for industry leaders to leverage digital business tools and strategies to gain a competitive edge, with Artificial Intelligence (A