August 30, 2013
There have been many pilots, case studies and trials in India to test NFC technology. Some of them are in transit applications, which is a good sign as those are high potential sectors for NFC wherein it can replace contactless cards and create a good business case to replace cash and queues.
*SBI partnered with Bangalore metro to launch co-branded NFC enabled debit cards/travel smart cards
*NFC technology is being tested by DMRC for ticketing services
*HID Global in association with Sony has jointly developed contactless smart card reader platform
*Yeldi Softcom has launched Ara eTap, an NFC sticker-based mobile payments service
*NXP announced plans to issue NFC enabled 'e-Shakti' cards for rural banking customers
Of course one of the biggest NFC trials in India so far has been done by Citibank. In 2009-2010, Citibank launched an extensive NFC payment system trial in Bangalore to gather customer insights. Results were quite favourable but small sample size and high adoption incentives might have skewed the picture.
Major pain points
LTP view: The question is whether NFC payments can go beyond trials. Below is an analysis considering several factors