Aruberusan News

Someone asked me to provide feedback on an article regarding The Future of NFC Payments (yes, capitalized, like in “Big Future”). I do not cherish the idea of giving up my contact details for a brochure download, so I did not read the actual paper. I cannot imagine why people would not want their ideas to be widespread. I think it is silly to force people to register when you want them to read your articles, for they will simply read it elsewhere.

Anyhow, back to the subject of mobile payments with NFC – that’s what the paper claims to be about. I do not really know what they said inside but seeing “NFC was hailed as one of the biggest trends for mobile operators for 2011″ in the blurb is enough to get an idea of what might be on the inside.

Now, let’s be clear that mobile payments are a fighting ground for two large forces: the banking industry and the mobile service industry. Both of them deal with a lot of customers and a lot of cash. And none of them would willingly give up the payment transactions stream to another. One, the banking industry, owns the terminals and the networks, the payment infrastructure. The other, the mobile industry, owns the handset and the SIM card, the means of payment.

So, until I hear that those two – mobile operators and banking associations – came into some sort of an agreement between themselves on some terms regarding the mobile payments, I am not going to lose my sleep over any imagined mobile payments trends, with or without NFC, this year.

Mind you, there is always a chance for a small handset manufacturer like Apple to come up with a painfully obvious scheme that Nokia simply cannot afford…. But that is another story.

I stumbled upon an article in PopSci (Popular Science?) on-line publication titled Everything You Need to Know About Near Field Communication. My opinion is that many of the things described there reflect a lot of wishful thinking on the part of the smart card industry players. Especially where they go on about “everything has just started to come together”, which is exactly the same thing they were saying for the last five years or so. I was on the inside, I should know.

I think that for the more inclined to actually understand the technology in easy words, I would suggest simply reading the original NFC White Paper written by myself years ago and published by Ecma International. Trust me, nothing much has changed in the meantime, all concepts still apply today as they applied then.