NFC Technology Is Revitalizing Mobile Payments

Mobile contactless systems based on Near Field Communication (NFC) offer a much faster way to initiate payments with a mobile phone than SMS or other mobile network-based technologies, providing a clear improvement over earlier mobile payment systems. Mobile contactless systems, like Japan's Osaifu-Keitai, will generate plenty of interest and hype over the next five years. But technology isn't the main barrier to wider mobile payment adoption in developed markets. Mobile contactless payment systems based on the NFC standard face many of the same adoption hurdles as other new payment systems. Product managers at mobile operators, banks, and payment networks will need to collaborate to overcome hurdles like application setup and merchant acceptance and to develop a clear business case.