NFC technology is beginning to gain traction in China. China Mobile and China Unicorn, both telecommunications companies, are the latest corporations to adopt NFC technology in the country. Smart phone ownership is growing throughout the nation, along with the demand for new ways to use such devices in terms of commerce. Both companies plan to join the other 43 companies that are working to bring NFC technology to China, hoping that NFC-powered mobile commerce will soon take root and become a major financial phenomenon.
China is home to the highest number of mobile connection in the world. This makes the Chinese market especially alluring to companies developing NFC payment devices and applications, such as Nokia and Google. China Mobile and China Unicorn hold a combined 800 million mobile accounts and believe that the market is well prepared for mobile commerce. China Mobile, in particular, is now working to build new mobile devices that come equipped with NFC chips. These chips will make mobile transactions possible.
One of the major hurdles facing the widespread adoption of the technology in China is businesses. While some large companies have shown favor for the technology and mobile payments, smaller companies have been reluctant to facilitate mobile payments. The issue may lie in the untested nature of mobile commerce. Another factor may be the fact that businesses will have to spend their own money to purchase NFC terminals which make mobile payments possible.
Nonetheless, China is poised to become a major power in the world of mobile commerce, if more companies adopt NFC technology.