What do you mean by Near Field Communications (NFC)?
NFC is a wireless technology that communicates wirelessly in both directions over a short range between two devices. NFC can be applied in paying for goods and services, ticketing, or information sharing between devices, based on Radio Frequency Identification RFID technology. The potential of services such as NFC are attracting business and consumer attention.
NFC has an advantage in usabilty and security over blue tooth even if their maximum speeds are slower. Near Field Communications is a wireless technology that operates over short distances; devices can implement this technology to permit an user to, for example, store credits to be used to securely and instantly pay for public transport, eliminating inconvenient additional steps. In addition, NFC uses less power than Bluetooth and can work when one of the devices is off.
To create nearly any kind of connected device, NFC has the ability to be integrated by this flexibility and wider application of the technology. INSIDE Contactless, a NFC semi-conductor provider, is one of the companies at the heart of using NFC in reliable, fast, and secure transactions for access control, payment and transport and electronic identification. The smart card, cellphones, handhelds, checkouts, key fobs and PC peripherals are among INSIDE’s innovative solutions. NFC is hoping to enter the mainstream of its users activities via cell phones.
Problems the General Adoption of NFC May Encounter
NFC has not achieved its complete mass market roll-out, regardless of the fact that there are a billion smart cards and 4 billion mobile phones being used all over the world. While barriers still remain, the mobile industry is working to implement NFC for a full roll-out. By the year 2014, one sixth of mobile phone users will have NFC-enabled units that will enable them to conduct small-scale transactions, according to the estimations of industry analysts at Juniper Research.
Cooperation amongst key developers in various aspects of the mobile ecosystem will determine the long-range success of Near Field Communications. Parties critical to your success are: mobile operators, financing companies, device manufacturers, service providers as well as other reliable entities. NFC has partnerships with Banka Koper, Mastercard Europe and Mobitel in Slovenia. There subscribers can pay for things by a simple tap.
Many businesses. like Sagem Wireless, are dedicated to leading the field in developing new devices that use Near Field Communications. Take for example, the new CosyPhone by Sagem Wireless uses NFC to provide a simple product to those over 50 that will conform to their specific needs. As an example, NFC is used by the phone to enable simple calling as well as to allow access to data services by permitting users to wave their Cosyphone past shortcut cards that are pre-configured and customized in order to call friends and family, or services like doctors and grocery shopping.
Customised cards can also be created for your calendar or journal. A simple wave of the instrument past the cards send pre-configured text messages, like greeting happy birthday to relatives.
The manufacturers of mobile communication equipment have to agree to adopt NFC and incorporate it in their devices before the technology is adopted. Mobile network operators help expand the Near Field Communication technology because it will allow new networked servers which will in turn create new revenue streams. NFC services are more likely to grow with the support of mobile operators.
It is also important for banks and credit card issuers that need effective security for easy and reliable NCF payment transactions.
Despite the hurdles to widespread acceptance of NFC in connected devices, 2010 was a key milestone to determine the future industry leaders in mobile network operators, device manufacturers and service providers.
NFC is emerging as an active entity.
The alterations to mobile devices are evident. The Smartphone’s popularity leads customers to want increasing numbers of mobile data services. By charging for mobile usage of new devices and services, mobile operators and lifestyle brands perceive the revenue potential of creating such devices that are behind the m-commerce driving force. Through personalized services which target the specific needs of different communities, this company is looking to reclaim their audience from the Smartphone and generic App store and to develop their own pricing structure by offering connected lifestyle devices and benefits.
NFC is a technological revolution that makes brands and operators to have a connection with their target communities through these new services.
With devices becoming more ubiquitous by the day, a system like NFC can be a total game-changer.
NFC has been a pioneer in contactless ticketing pilots across the globe. Consumers yearn for the ability to pay for a bus or train fare with a cell phone.
Trials in some European nations have found that NFC devices improve the “smart” card experience. NFC enables its users to do much more than just touching in and touching out, they can also check and modify their balance, and retrieve travel information
Payment methods: There are other options for NFC enabled cell users to pay their monthly bill. There are options to add multiple credit and debit cards to the NFC device that helps the user to utilize their phone to pay for goods or services at virtually any outlet. Obviously, the concept associated with a “electronic wallet” must require merchants including stores, dining establishments as well as pubs, to support Near Field Communications during the implementation regarding innovative transaction equipment, that will be implemented gradually.
But, global events like the London Olympics in 2012 are set to kick-start this m-payment with possible plans including having smart tickets for the Games that can double-up as contactless payment and travel cards to create a cashless Olympic Village.
Juniper Research say that while the Asian market is already established in making contactless payments, by 2014 these services will take off in North America and Europe as well, totaling $110 million. Trials at Disneyland Paris (France) and Australia’s Telstra have been a success.
Sharing: Pictures, videos, and games are some aspects we want to share with our friends via cell phones. The NFC enables devices to share music, photos and even video, just by being in the proximity of other enabled devices. The following has the ability to be conducted through most dimensions of society-from the younger generation comparing various media to corporation type data processing which involves business cards and spreadsheet applications.
By creating posters and promotional materials ,which are NFC compatible, marketing and advertising industries are being changed by NFC. When end users see posters that have products peaking their interests advertised on them, they will be able to whip out their phone and download information for their use and to send to their friends. By sharing data with each other, marketers can reward their customers for answering about their personal preferences.
An example of this would be working with the art musuem, the Centre Pompidou, in Paris. Smart Muse uses NFC technology which allows viewers to wave NFC-enabled phones near compatible exhibits. This brings viewers more information about the exhibit and artist. It also provides videos and interviews for the viewer to watch and listen.
Social networking sites such as Facebook will allow users to share information and opinions about the exhibit. The system launch is being synchronized with the opening of the new Teen Gallery later on in 2011. At the same time, Nice, a city located in southern France, will have the distinction of becoming the first city to widely use NFC technology, including the implementation of an NFC tour guide of its historic old city center. The Smart Muse project, funded by a grant from France’s Ministry of Economy, provides tags and contextualized-location and time-based-content management systems.
NFS technology has itinerant opportunities. With the continuing development of infrastructure, more apps will be created as technology improves. As more people utilize NFC and it becomes more ubiquitous, therefore further applications will be generated.
A summary of the Near Field Communications application.
Though Near Field Communications provides support and may enable apps on handsets, the initial phase of its employment is seeing Near Field Communications being used for payment and ticketing in the transportation field. Tests have been done all over the world that show that many successful services are being developed that will take advantage of the connectivity provided. With more and more NFC compatible devices being launched by device manufacturers, mobile operators and service providers need to work closely to put in place the infrastructure that will facilitate and drive rollout of the technology.
We have a good resource of information on the Near Field Communication technology which is also known as (NFC) Near Field Communication.
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