Eighty-six percent of industry stakeholders believe NFC-based proximity
payments will be adopted, and it will happen with a "Collaboration
Model," bringing together banks, mobile operators, merchants, handset
manufacturers and other service providers, stated a new research report
from the Smart Card Alliance Contactless Payments Council.
In a survey conducted of stakeholders in the mobile and financial
payments industries, the Council considered four different business
models for proximity mobile payments using NFC-enabled phones and
interviewed executives at key organizations on critical questions
pertaining to the success of each model.
"With the obvious market opportunities behind proximity mobile payments
generally accepted across the industries involved, the purpose of this
research was to get a sense of all of the different stakeholders'
visions for how the mobile and payments ecosystems could come together
to make these payments a reality," said Randy Vanderhoof, executive
director of the Smart Card Alliance.
Survey responses indicate that, with so many players involved in the
ecosystem for proximity mobile payments, the simple fact that no one is
making the first move to mass deployment presents a large barrier for
adoption. Respondents believe a third party in the role of trusted
service manager needs to make a bold move to orchestrate the activities
of all the key players, such as final selection of handset and chip
standards, merchant enablement, standards for certifying and deploying
secure payment applications, and development of a model for
The report contains the results of the survey, conducted by members of
the Smart Card Alliance Contactless Payments Council Mobile Payments
Work Group, by either in-person or telephone interviews during December
2007 and January 2008. Other findings in the report include
stakeholders' opinions on potential new sources of revenue from
advertising, loyalty and rewards, co-branding arrangements, and
customer fees for new services.
The Smart Card Alliance Contactless Payments Council Mobile Payments
Work Group members that contributed to this report include: Bank of
America, Collis America, CPI Card Group, Discover Financial Services,
Gemalto, Giesecke & Devrient, IfD Consulting, IBM, Infineon
Technologies, INSIDE Contactless, JCB, Power2Process, Venyon, VeriFone
The Smart Card Alliance is a not-for-profit, multi-industry association
working to stimulate the understanding, adoption, use and widespread
application of smart card technology.
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