NFC Could Kill The Credit Card Companies
NFC is an opportunity for handset makers to make some big money. Apple, with its existing iTunes payment system, could clean up if it puts NFC technology in its phones and allows people to pay for goods with their iPhones, by-passing Visa, Mastercard, Amex and the like. Google, via Android phones, could do the same.
Bye Bye traditional credit card companies and their exorbitant charges.
The network carriers, always a few years behind the times, look as if they want to be in cahoots with the traditional credit card companies with AT&T, Verizon and T-Mobile saying they’ll work with Mastercard and Visa on their Isis joint venture.
. “The carriers hope to leverage the dominant position enjoyed by Visa and MasterCard in credit card payments to ensure a seamless consumer experience when customers use their mobile phones to make payments,” says iSuppli’s Dr Jagdish Rebello, “such a move will drive an increase in unit shipments of cell phones with embedded NFC capability in the United States and around the world,”
But there is absolutely no need to have the traditional credit card companies, who have charged vendors big fees and users big interest charges, to be cut into the NFC deal.
If Apple and Google take the initiative and cut out the card companies, the move to NFC could become very lucrative for them.
iSuppli expects that over 90 million NFC-enabled phones will be made this year, rising to 400 million in 2014 and one third of the market – over 500 million phones – in 2015.Tags: apple 2c, consumer experience, google, mobile phones, system 2c