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Twenty percent of mobile handsets worldwide will include Near Field Communication (NFC) technology by 2012, according to New York-based ABI Research.
However, NFC-enabled mobile handsets will not become widely available until wireless operators see a clear return from specifying NFC in their latest cellphones, ABI warns.
“As dominant handset purchasers, mobile operators are the gatekeepers of NFC entry into new handsets,” ABI senior analyst Jonathan Collins says. “Until they are comfortable with getting a return on their investment in these handsets, NFC will not reach a mass market.”
The development of payment applications using NFC-enabled cellphones will require the involvement of card issuers, mobile operators and card associations, Collins tells ePaynews. “This involves two huge industries coming together.”
The business model for mobile operators is likely to involve their receiving a fee for managing software-based payment cards that are stored on NFC-enabled phones, Collins believes.
“The idea of giving operators a share of interchange revenue has been discussed and not been adopted,” Collins says. “The business model is likely to involve operators receiving a fee for hosting the payment application. Card associations will play a role both in developing the business model and in certifying NFC-enabled handsets.”
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