If you haven’t heard about Near Field Communication (NFC), you must know that you are one step behind the market. This wireless communication technology is not something new; however, it has been gathering the attention of many companies in recent years. By enabling the connection of electronic devices within a close range, NFC is taking the way business transactions are done to a new level.
The idea is pretty simple, and for a great number of people, it is also very convenient. Basically, smartphones can be used for payment purposes. The contactless payment is expected to transform payment options for areas such as transportation, health care, and retailers. Its applications also include bank deposits through smartphones and location alerts to friends in social networks. The concept sounds pretty amazing; however, it has raise controversy worldwide. While in China more and more phones are being launched with built in NFC technology, in France the majority doesn’t support the idea. Apparently, French are not interested in electronic payment services. Security issues, in addition to cost and complexity, are the main drivers of the resistance. American companies are adopting the new payment system. In my opinion, in the short-term traditional payment methods will dominate. In times where recession still hitting the consumer, people will remain more skeptical to use their phones for payments due to fear and uncertainty. In the other hand, the change is coming, companies most prepare for it because sooner or later the consumer will adapt. Once people become familiar with the concept, they will be swiping smartphones instead of credit cards.
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