Google, Apple, ISIS: Which Will Ignite NFC Payments
Last month, the Lydian Journal featured articles on the deployment of NFC:
Accelerating Deployment of Open NFC Mobile Commerce Applications by Charles Walton, COO, INSIDE Secure
Enabling Multi-Provider Services with Third-Party Service Providers by Drew Weinstein, Co-Founder, Sparq
In this exclusive NEXTcast interview, Charles and Drew are joined by Lydian Journal Technology Editor Patrick Gauthier to analyze potential catalysts for NFC payments and the impact of ISIS (the mCommerce joint venture by AT&T, T-Mobile and Verizon).
Patrick Gauthier is the Head of Market Intelligence at PayPal, the leading online payment solution provider. In this capacity, he can leverage 20 years of experience in product innovation across several industry (semiconductors, payments and digital media) and multiple geographies to deliver strategic insights to PayPal’s executive management. Prior to joining PayPal, Patrick advised a number of m-commerce and e-commerce startups, and held the position of SVP Product Marketing and Strategy/Chief Privacy Officer for ZillionTV, an early stage start-up building an ad-supported on-demand entertainment service for the connected televisions.
Charles Walton is the COO at INSIDE Secure and a payment technology industry executive with more than 15 years experience in developing and delivering new technology solutions for the payment market. He can be reached via email (cwalton@insidefr.com), LinkedIn (www.linkedin.com/in/charleswalton2010), or Twitter (cwalton2010).
Drew Weinstein is an entrepreneur and technology attorney focused on mobile. Prior to cofounding Sparq, Drew was of Counsel at Loeb & Loeb LLP, where he represented clients in every role of the mobile value chain, many with a focus on payment. Drew is also the Founder of Project 18, a mobile consulting firm working with major brands. Drew was the first hire of mobile marketing firm HipCricket, where he developed and launched some of the earliest multi-carrier mobile marketing programs in the U.S.
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I would like to learn more about ISIS. They have a job board, and no direct numbers or website which really explains what they will be doing. I presume that they will be signing up merchants for the NFC technology. Is there an alternative? How does it work with bar codes? Can ISIS negotiate discounts with merchants if customers use NFC mobile?
Lynn
Posted by Lynn Sullivan, 25/01/2011 8:30pm (1 year ago)
Just proper low value payments business model and nothing else will help mobile payments at POS.
Posted by Annonimous, 22/01/2011 12:59pm (1 year ago)
Indeed, NFC adoption is no where near as immediate as some commentators think. However, retailers can make decisions now about hardware procurement that will allow them to leverage NFC as it comes to the mobile handset market. Don't forget that some of the NFC Apps may be closed loop, retailer specific, like m-vouchers, which won't require the level of regulation that payments will.
In the meantime 2D codes can act as a enabler of more m-* applications, again as long as retailers invest in the hardware to read 2D rather than linear barcodes. It will also encourage consumer behaviour - to understand that the mobile can be used as a discount/payment/loyalty platform.
Posted by Lehane Kellett, 22/01/2011 5:14am (1 year ago)
Payments will continue to evolve and the popularity of smartphones will help accelerate mobile payments considerably. The speakers grossly overestimate the rate of adoption of NFC. Merchants are hesitant to pay for infrastructure upgrades for hardware based contactless payment as there is minimal benefit with that. In addition, handset manufacturers have not yet determined how they will get paid with NFC devices. That's a big factor that will delay new handset production and shipments. Once in a device, the real value of the NFC chip will be the software applications that can leverage its capability. For that to occur, there be development lag time to create and distribute the applications for each device - that will take longer than typical App store engagements because NFC payments will have financial and regulatory scrutiny which will need to be more carefully monitored than current App store applications. And finally, consumer adoption of contactless cards, key fobs, RFID stickers, etc. have been less than stellar historically. Too many people incorrectly believe that just because a phone might have an NFC chip that consumers will (a) understand how to use it and (b) want to do so. I believe NFC is a long way from gaining significant adoption and won't be as prevalent in the US until after 2014. As a colleague covering mobile payments for a leading private equity firm once told me, "NFC is DOA." Don't believe the hype.
Posted by Chris, 21/01/2011 6:20pm (1 year ago)
What about 2D barcodes? IBM just introduced a mobile strategy based on Barcodes, how come this is not mentioned?
Posted by Mark Sibthorpe, 21/01/2011 8:41am (1 year ago)
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