Mobile commerce and NFC technology gaining momentum

NFC technology mobile commerce

NFC technology mobile commerceNFC technology may not be as unpopular for mobile commerce as critics suggest

Mobile commerce may be all the rage in the retail industry, but NFC technology has been losing traction with both consumers and businesses, at least that is what the critics claim. NFC technology has become the cornerstone of most of the world’s mobile commerce initiatives, but many have begun to argue the overall security of the technology and how easily it can be exploited by hackers. The technology has, however, been growing in popularity among consumers, despite some of the negative attention it has been receiving in recent months.

Report shows growth of NFC technology

A new report from Tapit, a leading mobile advertising firm, shows that NFC technology is becoming especially popular in Australia. The report highlights the growth of NFC-enabled mobile devices and the enthusiasm that consumers have been showing in mobile commerce. According to Tapit, the availability of NFC-enabled smart phones has grown by 467% from the first quarter of 2012 to the first quarter of 2013. This growth is largely driven by consumer demand.

NFC devices are the cornerstone of mobile commerce

NFC-enabled mobile devices are needed to participate in most conventional forms of mobile commerce. While consumers can shop for and purchase products online using their mobile devices, they cannot purchase physical items in stores without an NFC-enabled device. NFC technology allows these devices to interact with payment terminals, effectively replacing physical currency and credit cards. The technology accesses a consumer’s financial information and uses this information to complete a transaction.

Acceptance of NFC technology tied to the growth of mobile commerce

Some companies invested in mobile commerce, such as PayPal and Apple, claim that NFC technology is inadequate and somewhat dangerous. Google and its largest competitor in mobile commerce Isis suggest that the technology introduces no undue risk to consumers. Australia is not the only place where NFC technology is becoming more popular, as the growth of the technology is also tied to the growing interest consumers have for mobile commerce.

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