April 17, 2014
Growing smart phone penetration in the world is expected to revolutionize the mobile payments industry across the globe. Currently, mobile payments are being dominated by USSD/QR code technology. Though, in last couple of years, near field communication (NFC) has emerged as a strong alternative proximity technology for mobile payments. This has driven the major players across the industries to develop mobile payments solutions around the same. NFC is growing substantially in terms of NFC enabled infrastructure around the world and the number of mobile based solution running on same. Even after strong growth of infrastructure, NFC adoption among end consumers has remained subdued. Last year saw entry of another competing technology, called Bluetooth low energy (BLE) in mobile payments. Apple Inc. has been at forefront of this technology’s adoption. Analysts across the globe are contrasting two technologies to determine winner, as the question of winner is critical in charting the growth of mobile payments across the globe.
'Beacon technology is expected to revolutionize the customer’s retail experience. It has potential to integrate all steps of consumer’s retail experience from product selection to payments to rewards' - Anonymous Study Participant (Retailer).
NFC is quintessentially a proximity communication technology based on radio waves with a range of 0.2 meters. BLE is technology build upon Bluetooth with low power consumptions, cost and high range (~100 meters). Because of its higher reach, BLE provides a user greater transaction ease as the transaction can be done from dis ...