NFC, smart poster applications to fatten operator APRUs

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A new report from Juniper Research forecasts that consumer usage of mobile coupons will generate close to $6 bn globally in retail redemption value by 2014, and the average revenue per user (ARPU) from near field communication (NFC) based coupon and smart poster applications will exceed those generated from payment applications.

The report-'Mobile Coupons & NFC Smart Posters: Strategies, Applications & Forecasts 2009-2014' says one in ten mobile subscribers in the developed regions will be using mobile coupons by that date. The majority of mobile coupon redemption value will be generated by the Far East & China, western Europe, and North America.

Smart posters with embedded NFC tags will bring to life static billboards, creating immediate interaction between potential customers and their prospective purchases. By simply waving their device close to the tag, users can take away a coupon or product information that can result in purchase decisions, says report.

Interestingly, NFC is being looked upon as a technology to revolutionize the way people shop.The global gross transaction value for NFC are expected to exceed $110 bn in 2014, driven by both payments and retail transactions such as coupons; and one in six mobile phones will be equipped to handle near field communication.

But here is a word of warning as well. Analysts fear that despite NFC trial showing very high levels of user acceptance, lack of willingness to change and learn a new method of making financial transactions may block its growth.

In developing countries like India, where NFC is at a pre-natal stage, lack of willingness and awareness can prove to be a big roadblock. In India, Citibank has announced to pilot test the NFC payments in Bangalore with the introduction of Citi 'tap and pay' service. Many nationalized banks like SBI, Punjab National Bank, Indian Bank, Allahabad Bank, that are in the process of extending their rural reach are looking at NFC as a potential solution for financial inclusion.

NXP Semiconductor has come up with NFC technology solutions, which will help set up micro banks in every village in India. It is deploying projects through customer service points equipped with new generation NFC-enabled mobile phones, contactless RFID smart cards, and integrated biometrics. It is also working on a project to give mobile phone an additional role as a car key, using NFC technology. In this regard, it is in talks with a few car manufacturers.

India has just started to look towards NFC. To ensure faster adoption of the technology, the industry will prepare a fertile ecosystem for it, and ensure that it does not miss the bus of the next-gen technologies.

heenaj@cybermedia.co.in