NFC technology usage set to explode in 2012

Sales of Near Field Communication (NFC) phones are set to increase by 128% in 2012. Mobile payment services will drive the growth of devices with NFC chips with 80 million set to be sold in 2012 according to IMS Research. The firm projects that growth fuelled by the London Olympics will have a lot to do with this as number of different organizations, such as Telefonica UK, Samsung and Visa look to take advantage of the technology.

The technology is already present in the city with Oyster Cards widely used on mass transportation. NFC received a further boost when Google Wallet was launched in conjunction with Android smart phones and more devices are now coming to the market featuring the technology.

PayPal choosing to test a mobile payment solution over the Festive period has further backed it. The leading payments provider released the following statement earlier:

PayPal has announced today that it will be testing a new NFC mobile payment application in Sweden over the Christmas holidays to bring NFC payments to the point of sale. As a part of the test, PayPal is partnering with two Swedish retailers:

Alpingaraget, a leading retailer of ski and sports equipment and the electronics store, Webhallen…While an NFC-pilot program may sound surprising given PayPal’s apparent ambivalence toward the technology, [PayPal's Head of Consumer Engagement Marketing in Northern, Central and Eastern Europe, Catrine] Rhenberg said the In-store effort is a part of PayPal’s overall strategy.”

The gaming industry is excited about the opportunities that new payment technologies will bring in the future. NFC and other advancements present the chance that in future you could touch a payment onto your smart phone to deposit or withdraw money from your online gambling account. It would hinge on government approval in certain jurisdictions and it’s realistic to think that this could have an effect on the industry within five years.

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