By the Mind Commerce Staff
There was an explosion in mobile payment service launches, joint ventures, and partnerships in the 2011-2012 period, along with announcements of new initiatives that would run into 2013 and beyond. Merchants are starting to appreciate the benefits that mobile payments can bring, with major chains including Starbucks and McDonald’s launching services on a national basis.
The role of Near Field Communication (NFC) in mobile payments continues to divide the industry. Its champions argue that it will propel mobile payments into the mainstream, whereas its detractors point out that it is a technology not a service, and is just one of a number of enabling technologies capable of supporting mobile payments.
Despite having been around for more than a decade, only now is NFC beginning to make a serious assault on the marketing industry. Much of the focus on NFC over the last couple of years has been around contactless payment. There has been little if any discussion about capturing data from NFC transactions for analytics.
NFC technology works by sending data via radio waves between two devices that each has an NFC chip when the two come into close proximity, typically within a foot. It works by the same methodology as RFID (Radio Frequency Identification) tags. In one scenario, a customer picks up an RFID hanger holding a shirt and examines the garment while viewing relevant product knowledge displayed on a nearby panel. The customer enters a fitting space and tries on the garment.