Comments on: NFC + Retail = Fail

By: Luis Samra

Luis Samra — Sat, 03 Apr 2010 02:09:52 +0000

The question is cost for the incumbents. Why invest more on something that will not increase their revenue?

By: Colin Gibbs

Colin Gibbs — Wed, 10 Mar 2010 06:32:00 +0000

@David — You and I disagree on the definition of obsolete, but yeah, I see your point that they’re a huge security vulnerability.

But we’re in lockstep with the argument that the entrenched players won’t allow another link in the value chain until they’re forced to. And on the retail side, at least, there’s little reason to think that’s going to happen soon.

Incidentally, a nod to one scenario offered by Pavan: http://gigaom.com/2010/03/09/are-virtual-keys-the-key-for-nfc/

By: Michael Scharf

Michael Scharf — Tue, 09 Mar 2010 03:34:16 +0000

Colin: David is right, MagStripes are obsolete. Not that they are not used, but that they are easily hacked and have been surpassed by other technologies (of which NFC is but one). Mag Stripes are a major source of credit card fraud.

The issue is not the technology, but rather that each player (bank, credit card association, carrier, handset manufacturer, etc.) believes that they each are due 100% of the value created by this new payment mechanism. Until something forces their hand, the existing players will not let another player into the mix.

By: Colin Gibbs

Colin Gibbs — Wed, 03 Mar 2010 17:08:35 +0000

You’ve offered some pretty interesting examples, Pavan, but Apple’s backing in itself won’t move the needle much. NFC will be as big as consumers make it, and at least at the retail counter there just isn’t any demand.

Credit cards are obsolete, David? You and I must be shopping at different stores. =)

By: pavan

pavan — Wed, 03 Mar 2010 09:11:18 +0000

Well said David. NFC cards have already begun to grow the market in the UK. What about elsewhere? I would be really interested to know.

The potential for NFC is huge and exciting. Apple will surely contribute to growing the market. Here are some examples on it’s application for inspiration:

http://www.nearfieldcommunicationsworld.com/2009/11/05/32191/apple-testing-rfid-enabled-iphone/

http://www.nearfieldcommunicationsworld.com/2009/07/08/31384/apple-to-build-nfc-into-the-next-generation-iphones-touchscreen/

http://mobileinc.co.uk/2010/02/apple-patents-show-iphone-macbooks-to-feature-nfc-this-is-big/

This is as BIG as we (or Apple) make it. Sign me up too.

By: davidm

davidm — Thu, 25 Feb 2010 22:51:10 +0000

Mobile consumes adjacent technologies. It’s growing appetite requires ever expanding markets. None bigger than payment/transit.

Credit cards are obsolete. Carrying stacks of embossed plastic provides no utility to consumers. ”Secret codes’ printed on backs of cards are laughable. Mag stripe is no better – a 40 year old technology any 2nd rate hack can crack. Similarly no excuse for having to wait in line to buy a transit pass as your train leaves.

There is nothing lacking in the demand equation for NFC. Lack of adoption speaks more to the carrier/handset manufacturers’ historic stranglehold on the market and their lack of innovation.

Google/Apple are changing the balance by introducing phones/ features based on consumer demand, not carrier requirements.

Picture Apple’s ad campaign featuring new payment enabled iphones. Just the sort of ecosystem problem they’re known to solve. Coming soon? Hope so. Sign me up.

By: Colin Gibbs

Colin Gibbs — Wed, 24 Feb 2010 07:48:10 +0000

Thanks for the note, Derek. And yeah — I’d be happy to trial your steamy dog heap (and give rave reviews!) for $100 to spend around town. Meanwhile, it will be interesting to see just what kinds of niches NFC can fill over the next few years.

By: Derek Kerton

Derek Kerton — Tue, 23 Feb 2010 17:39:19 +0000

I think I could “field trial” a steamy dog heap, and find market acceptance…as long as I attached $100 in free stored value for each test subject!

Of course, I’m just bitter, because I didn’t get mine at MWC;-) I think their goal was just to expose some influencers to how easy it is to transact once an account is set up, and infrastructure is in place. That part is good, but…

^^^You’re right. NFC trials are pretty much pointless. The technology solution is not in question. What IS in question is the ecosystem and true market viability. You can’t “trial” market viability – you go to market and either succeed or fail.^^^