Are Consumers Ready For Near Field Communication?

Do you remember when phones were just for talking? Now phones are smart, they show you how to get from A to B, they let you check-in, watch videos, have face-to-face video chats, do online banking, play a game featuring bird/swine aggression –  the list is almost endless. And as if that wasn’t enough, your phone will enable you to leave your wallet at home very soon.

The idea behind Near Field Communication, or NFC, means innovators like Google are working on the mobile phone’s capacity to store important data and make purchases rather like a credit card might. But are consumers really ready for yet another huge leap in mobile technology? And if they are, what safety issues are involved in having sensitive data stored on something as ubiquitous as a cell phone?

On the surface there appears to be many benefits to Near Field Communication. Your smartphone will enable you to leave your credit cards at home, so all you’ll need to carry is a mobile or mWallet to enjoy a newer, quicker, and safer payment method. Consumer Reports says that digital wallet payment systems hooked to a credit card account are the safest of all payment methods one can use.

NFC also lets you to share contact information, video, audio and pair with Bluetooth devices just by touching devices or terminals. Communication is all done in very close proximity, hence the ‘near’ part in the name.

It all sounds fantastic, doesn’t it? Okay, now let’s look at the dark and potentially dangerous side of NFC.

If you’re anything like me, you’re thinking, “I’ve lost/misplaced my cell phone before. What will happen if someone acquires/finds my mWallet?” That might not be a concern for Android users. Always looking out for our best interests, Google’s answered that fear by planning to provide fingerprint sensors in Android phones to protect its Google Wallet against fraud and keep mobile users’ data safe. It makes a lot of sense – you have to open the app with your finger anyway.

Near Field Communication and mobile payment technology is still largely unavailable in North America, so it will be interesting to see how this will all play out. At this point it’s a matter of rollout execution strategy. Payment providers and manufacturers have rightly judged that a cautious approach is best. Consumers will not only have to be shown the value of using another payment method but also be convinced of its safety. That being said, it will be after retailers are convinced of the benefits that the real push will begin.

One thing is clear: The NFC powers-that-be must take great care not to rush the technology to market because consumers’ private data and finances are at stake. If fraud and security issues remain low, consumers should embrace the technology.  The seamless integration of payment technology will be as revolutionary for the payment industry as Google maps was for the map business. The change will be fast and complete. Buckle up and get ready.

 

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