NFC payments may be overhyped
March 18, 2013

Businesses have a number of options available to them when it comes to accepting mobile payments. Currently, many companies use hardware attachments that allow them to turn their smartphones into credit and debit card machines. However, some merchants are also eagerly awaiting the widespread use of near field communication (NFC) technology that will allow them to accept credit card payments and debit card payments with the tap of a phone.

NFC payments are expected to gain traction as more devices begin to use the technology. However, new research conducted by the Global Innovation Jury (GIJ) suggests that NFC payments may be overrated - they aren't expected to provide much value to consumers and won't encourage many customers to radically change the way they pay for goods.

As many as 60 percent of jurors belonging to the research organization, which consists of 25 experts from banking, payment processing and tech firms, believe that while NFC has drawn a lot of buzz from payment specialists, contactless payments will not live up to the hype. GIJ asserts that NFC payment will need to bring more to the table or else it will not cause a massive change in the way people currently pay for goods and services.

"Many existing applications are just too complicated to use for consumers," the report states, as quoted by Mobile World Live.

Mobile payments are an important asset for any modern business because they allow companies to be more flexible in how their customers can pay for products. Even though NFC may not live up to the hype, a solution such as Sage Mobile Payments can be a massive benefit to businesses. Sage's hardware allows organizations to offer mobile payments to customers without having to invest in costly point-of-sale hardware and software upgrades.

Nexus: G-WEBCD5