Report shows the growth of NFC technology

NFC Technology mobile commerce

NFC Technology

Report highlights the successes of NFC technology

Technavio, a market research firm, has released a new report titled “Global Near Field Communication Chip Market 2011-2015.” The report highlights the trends that emerged to influence the worldwide NFC chip market and provide insight on how these trends could affect the market’s future. The report is tailored for “decision makers” who are interested in the capabilities of NFC technology and its various uses. The report notes that one of the most popular sectors in which NFC technology is playing a major role in is mobile commerce.

NFC technology and mobile commerce go well together

NFC and mobile commerce go hand-in-hand. The entire concept of m-commerce revolves around using a mobile device, such as a smart phone or a tablet, as a payment platform. This has been done, to some degree, in the past with the help of e-commerce systems, but NFC technology is capable of taking mobile shopping and purchases to a new level. Devices equipped with an NFC chip are capable of facilitating transactions as though the device itself were a form of credit card. The allure of m-commerce has managed to capture the investments and commitment of companies all over the world.

Report shows growth of NFC market

According to the report, the global NFC chip market will experience a compound annual growth rate of 135% between the years 2011 and 2015. Much of this growth is suggested to be due to the emergence of contactless technologies that provide consumers with new services. As these services become more popular, the demand for NFC technology rises. Mobile devices that are not equipped with an NFC chip cannot take advantage on contactless services that are based on NFC technology. Thus, driven by consumer demand, more companies are developing devices that are equipped with NFC chips, leading to the growth of the global chip market.

NFC used beyond mobile commerce

Though NFC and m-commerce work well together, the technology is used for more than facilitating mobile payments. NFC technology has built a strong presence in marketing and is beginning to establish a foothold in a variety of other sectors, such as travel. NFC technology is considered a way to make a wide range of services more convenient for consumers, as long as they have an NFC-enabled mobile device of some sort.

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