Who's Going to Profit from NFC and Mobile Payment Technology?


Bob Egan (Managing Director)
I think there may well be phases of profit distribution.

Phase 1 (now): its about the semiconductor guys making the devices and the integrators putting in the smarts. (programming). This phases is not just about payments and smartphones, but NFC in many other devices including printers, ID cards etc.

Phase 2: (2-4yrs): Point of Sale (POS) machine vendors who benefit from POS upgrades at brick and mortar merchant locations.

Phase 3 (3-5yrs): Retailers in particular pair up with agile new technology suppliers that redefine the consumer engagement model - in store and out. Retailers continue to look for ways to decrease fraud, decrease cost and lift sales - this needs to be the business plan for the new tech suppliers who have a vested interest in NFC at the POS.

Love to hear other points of view !
2 Additional Answers
Ken Wineberg (Sales Manager, Group Mobile)
Initially it will be those who manufacturer / distribute and install the infrastructure to make mobile payments a reality. Every point of purchase will need the hardware to process the electronic payment, and then there are all the vending machines and other devices that will need upgrading.
This will also include cell phone manufacturers who will upgrade their phones to be NFC capable.
It is estimated that there are 1,618,000,000 credit cards in consumers hands in 2010.
Being that they almost all have a mag stripe reader that needs to go away, there will be a need to replace many if not all of them.

Then there are the banks, as they for sure will add their transaction charges onto each transaction.

So it looks like everyone will profit including the consumer with ease of use. (We hope)
Contador Harrison (Software Developer, Somocon Oy)
Nikaido,I would like to first inform you that 2011 will be the year when key players start to throw their hat into the digital payment space and Google wallet could indeed be the start of ‘digital money. This technology of mobile payments has excited firms such as smartphone designers, such as Apple and BlackBerry-makers Research In Motion, but in my opinion it has worried many credit card companies because this could mean end of their business as time goesby.NFC technology was aimed at reducing fraud. Apparently the anti fraud element is that because you do not need to enter your PIN it cannot be seen by other people. They seem to ignore the fact that fraudsters do not need the PIN just your card.But if Google wallet will overcome that then main beneficiaries will consumers both off and online.

Consumers will generally benefit because the technology is aimed at making it easier for you to pay for and save on the goods you want, while giving merchants more ways to offer coupons and loyalty programs to customers, as well as bridging the gap between online and offline commerce.Google emphasized that the service would be open to all businesses and invited other banks, credit card issuers, payment networks, mobile carriers and merchants to work with it.One of the key reason why this technology will succeed is the security element of the technology that, when the phone is stolen, the credit cards inside could be remotely disabled meaning unlike our credit cards we will be more secure with the technology.Consumers would have the same ‘zero liability’ for unauthorized transactions made with their phone as they would with their plastic cards.

The cost of installing payment chips has kept carriers from signing on, as has haggling over how the transaction fees should be divided.For now, Google has decided not to take a cut of these fees, which generate billions of dollars for the likes of Visa and American Express.After thusday suit,I am not sure whether PayPal refused to waive fees, but it could be the reason they failed to beat Google to the chase of this idea.Google will earn money by relying on revenue generated by the increase in traffic to its websites, its new coupon initiative and the sale of more Android phones.

In closing remarks,this technology will help us store your credit cards, offers, loyalty cards and gift cards, but without the bulk.When we tap to pay, our phone will also automatically redeem offers and earn loyalty points for you.I do strongly believe that soon the boarding passes, ID,tickets and keys could be stored in Google Wallet.
My top five beneficiaries of the technology are mobile operators, banks, technology companies,consumers and Google.

Q&A Related to "Who's Going to Profit from NFC and Mobile Payment..."
With all due respect, your question is loaded. NFC can be a mainstream payments technology, and I am fully confident it will be. The simple fact is that the financial industry does
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I can see that happening where NFC technology comes into play. If I buy prepaid services online (e.g., concert tickets bought with a credit card and download them ...
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