Leading firms continue to leverage the latest tools and technologies to drive performance especially around minimizing transaction costs. With razor thin margins in manufacturing and distribution, the leading producers are resorting to Near Field Communications to gain efficiencies. In this week’s CIO magazine (Apr1, 2012, pg.30, see http://www.cio.com) Lauren Brousell talks of the things you need to know to make a more informed decision with NFC. Sandy Shen of Gartner says NFC appeals because "it supports any services that requires data transfer and authentication'
1. NFC is Cheap and Easy - short range transmitting technology connecting smartphones to data transfer.
2. Adoption Seems Inevitable - more merchants will use NCF for payments in the futures. Wallets are becoming obsolete.
3. It's a Hot Potato for Enterprise - Business with credit card companies and cell phone providers are debating who handles the billing process.
4. It's in use Overseas. Japan uses FeliCa to pay by smartphone. In the US, billing agreements are causing territorial conflict.
5. Security Risks Come Standard. As people lose HH devices, security will be an ongoing concern. Credentials and timeout features and alleviate to some extent.
My prediction: In 5 years, we won't have wallets in our pockets. Our secure and all-powerful smart phones will be our electronic portable banks and execute the transaction for us based on our preferences and propensities and electronically execute the transaction for the supply chain.