Embracing the Power of NFC in Asia

Embracing the Power of NFC in Asia

There has been a lot of talk as to how NFC is being positioned as the game-changing factor in the mobile payment solutions and services industry, especially with the widespread of competitors and slow adoption rate among consumers and merchants alike.

But the question is, how can NFC truly succeed given its massive potential and support with a broad coverage of mobile phones listed under Android, Blackberry and Windows operating system platforms in addition to the rising amount of NFC-enabled payment terminal services?

Undoubtedly, the backing for NFC is tremendous and with a strong enough presence to generate awareness among the masses, it's impossible to rule NFC out of the equation especially in Asia.

In fact there's plenty of traction for NFC to develop its growing infrastructure in Asia  with the following case studies:

  • Singapore has adopted a shared NFC infrastructure between its three main mobile operators, with strong government backing bet with 15,000 consumers already upgrading as NFC-enabled subscribers. Also, the Land Transport Authority owned EZ Link has launched an app offering top-up solutions for NFC-enabled smartphones without the need for users to visit ATMs or EZ link machines. It does this by automating payment with the user's designated Visa and MasterCard debit or credit card. At least that’s according to an article by The Straits Times
  • In China, the world's largest mobile network operator China Mobile has already launched NFC payment services in more than 14 cities in China as well as NFC pilot tests in Beijing's transportation services.
  • Transit ticketing in South Korea by the end of 2012 has also seen 10 million NFC smartphones supporting the single wire protocol-SIM standard sold by major telecom operators such as KT, SK Telecom and LGU+. More than two million people have already used NFC-enabled phones to pay for transit fares in 2012
  • Koichi Tagawa, Chairman of the NFC Forum stated that "Japanese airlines using NFC can board a 450-person plane in only 15 minutes, as opposed to the standard boarding process for a 150-person plane without NFC in 40 minutes".

With the following examples, it seems that NFC has been pulling its weight in the transport services industry by eliminating the need for queues. It’s the first step to simplifying the way people interact within a next-generation infrastructure.

According to a research conducted by Berg Insight, "Between 2012 and 2017 the installed base of NFC-enabled handsets will increase at a compound annual growth rate of 65% to reach 2.1bn units. The penetration rate for NFC across all handset segments will similarly increase to approximately 32% by 2017."

To further complement the rise in NFC-enabled handsets, "There will also be around 140 companies that use a TSM solution in commercially live NFC mobile wallet services worldwide at the end of 2013, up from 57 at the end of 2012 and the most active region for TSM projects is currently Asia Pacific, followed by Europe, North America and the Middle East.”

With the forecasted statistics, it’s only matter of time for NFC to bring its single-tap experience into opening more platforms, such as advertising, NFC tagging, access doors, and so much more.

This is a guest post by Hanis Jazil

[Image: Tupalo.com - Flickr]

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