Contactless payments have been getting a bit of attention in the last few days. The idea that consumers could pay for something simply by swiping their mobile phones against an in-store device sounds enticing, and mobile phone operators are certainly keen to push ahead with the technology.
Everything Everywhere, the company formed when Orange and T-Mobile merged, has recently announced the launch of a smartphone with Near Field Communication (NFC) technology embedded in it, due this summer. And there are rumours circulating that Apple’s iPhone 5 – to be launched this year – will also be capable of paying for small purchases by swiping it against a reader, in the same way that Oyster cards are used for travel on London public transport.
The phone releases might be high profile, but if retailers don’t invest in the devices to read NFC it won’t take off. There are concerns - NFC has a limit of £15 per transaction, making it less useful for any retailer whose average purchase is bigger than that. Plus there are big initial costs, with the devices being expensive, and big running costs, with bank charges for NFC transactions currently high. Steve Thomas, CTO at BT Expedite, says there are also cheaper alternatives that do the same job. Maybe the momentum from phone manufacturers will be enough to carry it, but it seems unlikely if retailers can’t be convinced.
Rebecca Thomson, Retail Week
