Mobile payment systems will continue to grow next year with the expected growth in number of NFC (near field communication) smartphones.
A report by Berg Insight, a research company from Sweden, predicted that NFC-enabled devices will have an annual growth rate of 87.8% by 2016 or roughly around 700 million units worldwide. The same report noted that this technology, which is apparent today in most high-end smartphones will soon be included in many feature phones due to their declining costs.
“Even though it will take some time before the stakeholders agree on business models for payment networks, other use cases such as reading tags and easy pairing of devices may well be compelling enough for handset vendors to integrate NFC in mid- and high-end devices already today,” said Berg Insight Senior Analyst André Malm.
Advanced mPayment and security
It’s no longer surprising to know that NFC-enabled devices are growing in numbers. Top mobile manufacturers have started producing their latest flagships equipped with the most advanced NFC chipsets on the market.
Apple first incorporated near field communication technology in their iPhone 6 smartphones. They will continue to produce handsets with the same technology, but with more advanced features. The newly launched iPhone 6s and 6s Plus will run the new XP 65V10 chipset that comes with additional security features and faster processing power. O2 said that the new handset comes with powerful internal storage at 16 GB, 64 GB, and 128 GB supported with 2 GB RAM. The Touch ID feature, which is now faster and more accurate in reading fingerprints, also supports several digital payment transaction systems for additional security.
Premium Android devices manufactured by Samsung and LG are now built with fingerprint sensors to unlock the device and make each mobile payment transaction secure. It is expected that mobile payment will grow faster than expected by next year because of developments such as these.
What does it mean for marketers?
In North America, 75% of NFC-ready POS (point of sale) terminals were shipped in early 2015 while 80% were delivered in EU28+2. Both territories have implemented a strong law implementing the usage of POS terminals in most prime establishments. But, how does it affect the process of most marketers? How does near field communication change the way businesses meet their target markets?
• Ease of use – In a world driven by technology, everyone is looking for convenience. So, having a payment system that is easy to use will draw more customers to the store and enhances customer engagement.
• Adds value to your brand – As one of the most eagerly anticipated technologies for retail shops, having a POS terminal adds value to your brand and business. Advertising and promotions are also easier to implement via NFC, which strengthens your revenue streams.
• Eco-friendly option – Save on paper costs spent on receipts and paper tickets. Customers can now view virtual receipts from their devices upon each transaction.
Are you a business looking to use near field communication for your to enhance your marketing approach? Read our previous post on how to use NFC technology to strengthen your marketing strategies.