NFC technology may be trumped with simple mobile application
Mobile commerce is gaining traction around the world, driven by aggressive investments in NFC technology from some of the world’s leading technology and financial companies. NFC allows mobile devices to be used as payment systems, enabling these devices to be used to make purchases with little more than a simple gesture. Companies like Google and Apple have been investing heavily in NFC technology in the hopes that it will give them an edge in the mobile commerce arena. PayPal, however, believes that NFC is not the future of the mobile commerce industry.
PayPal believes NFC is too restrictive for mobile commerce
PayPal had once supported NFC technology, conducting a series of trials with the technology to determine its viability in mobile commerce. After these trials, the company decided that NFC technology was not adequate enough to support the mobile commerce industry and could not live up to the expectations of consumers. Though PayPal abandoned NFC, it did not make an exit from mobile commerce. Instead, the company decided to create its own mobile payment technologies, the latest of which is a mobile application dubbed inStore.
App launches in UK to be used at stores in London’s High Street
The inStore application is available for both iOS and Android mobile devices. Consumers can use the application to make purchases directly from their smart phone, whether the product is physical or digital. The application has been launched in the United Kingdom, where mobile consumers can use it to purchase goods in over 230 stores found in London’s famous High Street. PayPal believes that the application is much more efficient than mobile payment systems that rely on NFC technology.
inStore application can be used by nearly any smart phone
PayPal is claiming that its mobile payment options are better for mobile commerce because they do not require retailers to install additional technologies in order to meet the needs of consumers. Furthermore, PayPal’s options do not require a mobile device to be equipped with an NFC chip. This means that nearly any smart phone can be turned into a mobile payment device, allowing mobile commerce to expand to a larger audience.