NFC technology brings new opportunities at the tap of a phone

Near-Field Communications (NFC) has arrived in Singapore. Learn how your business can leverage on this new technology to not just provide convenient transactions, but also to gain the potential for enhanced customer engagement through digital interactions.

By the myBusiness techblog team

Nobody leaves home without their mobile phones these days. While staying contactable on the go remains of high importance, phones these days come with many other features that have become part of everyday life. Surfing the web, engaging others on social media, and listening and watching to multiple forms of media are just some of the value-added bonuses of today?s mobile phones. But now there?s another feature to be added to the list ? using mobile phones to make retail purchases just like a credit or debit card.

NFC technology: It?s your mobile phone, and it?s also your wallet

Supported at over 30,000 retail points, Near-Field Communication (NFC) is the technology that allows customers to use their mobile phones to make payments with a simple tap on the reader, in a similar manner to EZ-link cards. In fact, the NFC programme was co-developed with payment provider EZ-link, with its infrastructure hosted by members of the Gemalto consortium ? comprising banks such as DBS and Citibank, as well as the three local mobile operators.

Three different types of payments ? credit, prepaid, and stored-value ? will be made available for all NFC-enabled mobile phones. Samsung and Sony have already released NFC handsets to coincide with the launch in Singapore, and more mobile phones supporting the technology are expected to be made available in the coming months.

A new revenue source for retailers

More customers equates to more business. The biggest advantage brought about by this new technology is that it greatly increases the potential customer base for whichever business facilitates NFC-made payments. This is very much similar to the introduction of NETS, and how it picked up and eventually became available across most retail outlets across the country.

So why use NFC when NETS, and credit/debit card payment facilities already exist?

1)?Greater efficiency

Scanning a smart phone takes much less time than waiting for the bank?s response for a card-based transaction. And compared to credit or debit cards, there?s no signing by the customer to further delay the exchange process. Thus, NFC makes for a faster and more efficient method of payment, allowing you to clear more customer purchases in a shorter time.

2)?Cards vs. Phones

Not every consumer owns a credit, debit or NETS card. Most people, on the other hand, do own mobile phones and mobile billing accounts. With more of the latest phones being launched with NFC capabilities, the number of people able to make cashless payments will continue to rise. The pool of potential customers can, therefore, only grow bigger.

3)?No preferred discrimination

It is common to find some retail outlets preferring payment by MasterCard, and others by Visa. Some businesses also prefer cards from only one bank, making the customers signed with a different bank feeling left out from good deals and discounts. Thanks to the unified infrastructure established by the consortium for this technology to operate on, owners of all NFC enabled phones will enjoy the same treatment and efficiency ? regardless of which telecom provider they subscribe to. This also contributes to the greater customer base you can have by accepting the NFC payment method.

Look out for major developments coming soon

With the convenience and efficiency it brings, this technology also has the potential for future application in industries other than retail. In fact, the consortium and the Information Development Agency (IDA) of Singapore are currently assessing the possibility for its use with public transportation.

But this technology is not just limited to only making cashless payments either. It has the potential to be used to share multimedia at the tap of a handset. For example, retail outlets at Sim Lim Square or Funan DigitaLife Mall could use this to distribute their price lists or promotions to their customers. This would eliminate the need for paper brochures, thereby cutting costs and making the sharing of information more hassle-free.

This, in addition to the great number of businesses already supporting and using it at launch, make it very likely for NFC to take off and establish itself as the next mainstream method of cashless payment. It may even become the de facto way of sharing websites and contacts, replacing the use of Quick Response (QR) codes. The possibilities and benefits it brings are plenty, making it an ideal asset for your business.

Tagged as: By myBusiness techblog, Sales & Marketing, SMEs

Source: http://mybusinesstechblog.com/archives/blog/near-field-communications-opportunities

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