NFC Won’t Win the Battle at the POS!
Contributor:
Randy Barker
Director, Channel Solutions
Banking and Credit Services
CSC
The mobile payment pundits would have you believe that all of the merchants already have completed or at least begun their upgrade to Near Field Communication (NFC) devices, and that the war for the point of sale (POS) is over. But I wouldn't declare victory for NFC anytime soon — or ever. Alternative mobile payment POS solutions are still more attractive to merchants because they offer lower hardware and POS software integration costs, thus providing a better ROI. These solutions include PayPal, QR code (bar code) and others.
The solution that will win at the POS will be the one that achieves one or more of these results:
- Provides a clear value proposition to reduce merchant payment processing costs
- Offers a "pay for performance" advertising solution
- Simplifies marketing and discounting (e.g., coupons) processes and costs.
The ideal solution will accomplish all three and make the customer the ultimate winner by simplifying and enhancing the payment and shopping experience. NFC hasn't made that case.
What do you think? Does NFC have a bright future?