Near Field Communications, or NFC, is a set of standards for smartphones that establishes radio communication between phones allowing for the exchange of digital content. Recently, the media has focused on NFC and its ability to digitize customers’ wallets.
As described in Holden's article, a consumer discovers a product or retailer via NFC, “checks in” by tapping his mobile phone on an NFC tag at the entrance to a store and then receives relevant coupons. If the customer decides to purchase one of the items for which coupons were issued, he will use his phone and the information stored on his phone, while still in the store, to make the purchase.
Marketing will certainly play a crucial role in encouraging the adoption of mainstream NFC usage. As Holden states, merchants will have to be persuaded to install NFC-enabled terminals (even though merchants have already made investments in cash registers, credit card machines, etc.) and users will have to be convinced that NFC, as a payment mechanism, is credible, efficient and safe.
It will be interesting to follow the marketing efforts for NFC. If the consumers are convinced that these digitized wallets are indeed the wallets of the future, then merchants will be forced to accommodate the consumers’ wants/needs. Will consumers be willing to store such personal and critical information on their smartphones? Will consumers be wary of the excessive amounts of data that retailers will now have on their customers?
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