Envisioning Beyond the Virtual Payment Horizon in NFC Landscape

It is totally amazing how the near field communication technology has evolved over the development timeline. The latest evolution has been their usability in virtual payment wallets. Of course, the adolescent trend is undergoing major structural transformations. Once involving payment gateways, transactions now are the exchange of digital tokens between the payee and payer electronic devices. Strangely, a huge population of consumers is in possession of NFC upgraded devices, while the stores and vendors are yet to catch up.

Evaluating current applications

Over the time, near-field communications technology has proved its usability in both improving global lifestyle. Its applications in critical environments of classified information sharing, clinical monitoring, and authenticating control access have so long been crucial. It has also defined operational trends in ticketing, inventory management, logistics, and certain service initiations. RFID-integrated devices have enabled all this and much more. 

The need for scenario evaluation has, although, been the result of growing payment opportunities with apps such as Apple Pay, Samsung Pay, and Google wallet. Even with these invasions, we still witness EMV cards becoming contactless in their transactional approach to reduce fraud events. However, isn’t get rid of all the card-hassle a better option? Virtual e-cards for all your transactions, which can be conveniently stored in the smartphone and used on-the-go has been realized by start-ups and leading providers in the recent past. 

Communicating the future

Dig into the root of trends, and we realize that portability has been the center of all advancements. To sum it up – ‘automatic status detection through digital communication between devices in vicinity of each other’. It is, thus, relevant to think of implantable micro-devices storing all pertinent data, installed in host itself. No, it is not the cyborg fantasy; we are talking translational science. The CEO of Digiwell went forward to exhibit the same at the Cebit trade show in Hanover, Germany. So far, the implementation has been about control-access recognition. Yet, it is a promising outlook to what the future holds for NFC market.

The discussion eventually heads toward the threats associated with data security.  Compiled data concentrated over one small chip, sounds like a lot to lose if there is any breach in safekeeping or backup software. Then comes the subtle reminder of the rigorous effort focused upon reinforcing data security by complex encryption tools and personnel. Users at the receiving end of communicating channels need to ensure proper data retention and handling for their business to grow in size and credibility. Unavailability of apt technical support is not going to be a plausible excuse.

Deducing market signals

Global markets for non-conductive signaling show positive projections collectively for all its verticals. Stakes have been raised for device manufacturers to develop cost-effective NFC compatible components. Market players have recognized the importance of commercialization for the technology to gain larger portions of market shares. The growth in number of smartphones and smart devices among the global population has indicated usage trends, and the market has been wise enough to adapt itself. 

In a report titled “World Near Field Communication Market - Opportunities and Forecasts, 2014 – 2020” by Allied Market Research, analysts have predicted a striking CAGR of 40.4% during 2015 to 2020. The market whose estimated value was $3.2 billion in 2014 is projected to reach $24.0 billion by the end of this decade. The report takes an analytical approach to study the NFC market by application segments, devices & their components, and geographical demand behavior. The financial ratios depicted for the current market structure as well as the leading players involved in it provide the stakeholders and prospective investors with profitable segments.

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