The Enormous Opportunity in Near-Field Communication
Picture the following scenario. You hop in a limo, bound for the airport. Upon arrival, you settle with the driver by simply holding your phone up to a small sign in the back where you're seated that reads "Pay Zone."
With carry-on in hand, you head toward your gate. Along the way you decide you need one more latte, which you pay for, by once again holding your phone up to a target area that says, "Pay Zone."
As you continue down the concourse, a poster advertising a coming event you've heard about catches your eye. You move over to the poster, but because you don't have time to read all the details, you simply hold your phone up to a target area that reads, "Information Zone," which uploads all the event data you need onto your phone, which you can review later.
You continue to your gate, where boarding has already begun. To board, you hold your phone up to a target area that reads "Boarding Zone," and on you go.
You take your seat next to a colleague who says, "I have those files for you." You place your phones next to each other, and instantly, the files are yours.
This is the new world of Near-Field Communication, and it will be a reality soon.1
"Near-Field Communication" (NFC) is a short-range communication technology that can beam and receive information at a distance of up to four inches. It enables the exchange of data between devices over short distances. The technology is a simple extension of a proximity-card standard, such as RFID, that combines the interface of a smart card and a reader into a single device.
This technology is compatible with existing contactless infrastructure already in use for public transportation and payment. But when this technology migrates to mobile phones, things will really get interesting.
Based on the scenario described earlier, it's easy to see that NFC technology will make life easier and more convenient for consumers by making it simpler to complete transactions, receive digital content, and connect electronic devices with a touch.
There are also benefits for merchants who can realize cost savings from eliminating equipment, ending use of paper and plastic cards, and reducing cash handling.
But the big winners will be the companies that provide transaction capability on devices, thereby profiting from untold numbers of transactions every day. It is the promise of these huge profits that virtually guarantee you will be enjoying the ease and simplicity of Near-Field Communication in the not-too-distant future.
- Nokia, the world's largest maker of mobile phones, has pushed NFC adoption for years, though the... To read the full article, you must be a Trends Magazine Subscriber. To learn more, click here
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