Mobile Wallet is “Near”

According to a recent survey, for 38% people, mobile has become more important than their wallets, no surprise then that the industry is working towards replacing the wallet with the mobile by integrating NFC (Near Field Communication) chips in the phone.

According to a new analysis from Juniper Research, NFC mobile payments market will exceed $75 billion globally by 2013, when 20% of all phones shipped will possess NFC capability. ABI Research claims that by 2010, more than 50% of mobile handsets – some 500 million units – will incorporate NFC capabilities.

Benefits to the user

NFC Touchpoint - Touch and Travel

The advantage of NFC integrated into the phone is it allows applications to be built on top of it, making it a true mobile wallet. This enables NFC to also be used for other purposes like access to public transport, your company or your car for that matter.

Forum Nokia describes the benefits of NFC for consumers

With just a point or a touch, NFC enables effortless use of the devices and gadgets we use daily. Here are some examples of what a user can do with an NFC mobile phone in an NFC-enabled environment:

• Download music or video from a smart poster.
• Exchange business cards with another phone.
• Pay bus or train fare.
• Print an image on a printer.
• Use a point-of-sale terminal to pay for a purchase, the same way as with a standard contactless credit card.
• Pair two Bluetooth devices.

A Usage Scenario

In response to a question on LinkedIn, Alvin Wong Kee Choong gave a wonderful scenario of how NFC coupled with LBS would simplify our daily life

Location: India
Scenario: Meeting a customer in an unfamiliar location
Transport: Delhi Metro
Phones: NFC enabled devices with GPS

Description:

• Key in address details on phone and click search
• Found address and selects transportation method, select Delhi Metro
• Calculates proximity to nearest station from current location and produces directions how to reach there
• Following instructions, reaches beginning train station
• Takes phone and makes quick purchase of newspaper to read from newsvendor or vending box secured and accessible via contactless reader, using NFC credit card application on phone
• Uses NFC phone to tap into station turnstile reader, using Delhi Metro card application in phone
• Reaches destination station, taps out with phone
• Passes by Starbucks smart poster on wall, quick tap of NFC phone, downloads mobile coupon
• Stops by Starbucks for purchase and uses mobile coupon for instant redemption of breakfast coffee at discount
• Checks phone location again, application recognises current location and with destination saved, maps out nearest path to reach customer meeting location
• Shakes hand with customer, taps customer NFC phone to exchange business card details

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