Contactless Smart Cards, RFID, Payment, Transit and Security

Strategy Analytics: Challenges Limit NFC in 2008

Wednesday, April 16, 2008 in News

Boston-based Strategy Analytics reports that Near Field Communication in mobile handsets is likely to remain limited to the trial phase in 2008, despite support from all quarters of the industry. The shortfall is attributed to the slow build-out. Details may be found in, “Enabling Technologies: NFC Penetrates 1 in 5 Handset Shipments by 2012.”

David Kerr, vice president of Global Wireless Practice, stated, “Unlike other Personal Area Networks technologies such as Bluetooth, the success of NFC in handsets is reliant on the ecosystem and the monetization opportunities present for all participants in this value chain. For NFC to be a commercially viable solution, we need to move from isolated field trials to a more open approach as in the most recent trials from Nokia, NXP and VISA.”


Bonny Joy, an analyst of Wireless Device Strategies at at Strategy Analytics, added, “NFC’s prospects have been hampered by conflicts of interest from operators, handset manufacturers and banks and payment processing companies. However recent technology developments, such as Single Wire Protocol, as well as single chip solutions incorporating multiple contactless standards, are promising developments and will spur growth in the medium term.” [end] 

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