Is Apple’s near-field-communication (NFC) smartphone another example of the retailer allowing others to pioneer a technology before presenting an accessible solution?

Is Apple’s near-field-communication (NFC) smartphone another example of the retailer allowing others to pioneer a technology before presenting an accessible solution?

The reality is that many people (businesses included) wait to see what Apple does before committing to a technology. That’s been the case with mobile payments and in particular NFC. Apple’s seal of approval will likely drive mobile contactless payments, and likely the use of NFC in general, in a way nothing else has managed to, to date.

“I wouldn’t be surprised if these announcements turn out to be another example of Apple… leapfrogging the competition”

Neil Garner, founder and CEO, Proxama

The buzz Apple will generate around Apple Pay and NFC is unquestionable, and Cook’s observation that previous mobile payments platforms had failed because they did not focus on the customer experience is absolutely right: Apple has made its Pay design interface characteristically straightforward for ordinary people to use which will certainly help consumer adoption. But this is about way more than mobile payments.

While Apple Pay will undoubtedly make mobile contactless payments in retail more palatable for consumers, the really interesting thing about what the new iPhone’s NFC capabilities will bring is everything else the technology could provide beyond just payments. Apple’s foray into NFC was stated as just the start – Cook told us that the NFC enabled Apple Watch opens hotel doors.

Delivery of real hyper-relevant content and offers in the retail environment and crucially the seamless redemption of those offers by tapping the same contactless payment terminal is nirvana for retailers and brands.

In particular, as we’ve seen through dozens of deployments of NFC payments and proximity marketing solutions for our customers like Barclaycard, Softcard – formerly ISIS, Diageo, Argos, Labrokes – and media network owners like Clear Channel and Exterion, location-based marketing and real-time engagement opportunities are made far more powerful through NFC. It is these applications, as well as mobile payments, that should get retailers and brands excited about NFC.

In the UK, where contactless payments via bank cards is relatively common, NFC is already established as the technology for point-of-sale payments and is demonstrated by the fact we’ve seen a number of supermarkets, fast-food chains and high street retailers like Eat and KFC, deploy NFC-enabled mobile payments services recently. This build-up of momentum is also clear with TfL introducing mobile contactless payments via NFC for bus and underground travel. 

Apple Watch

The other opportunity for retailers is the Apple Watch. This should provide the instantaneous experience that is essential inside stores, whether for getting information on a product, checking in, paying, registering a loyalty card, or receiving offers. Supporting such use cases with a watch will gain better consumer adoption in my opinion. 

You can see how it could be easier to react to a beacon-pushed message looking at your watch than taking your phone out of your pocket or purse, unlocking it and clicking on the alert in the notification area.

While the recent celeb hacking scandal might have tarnished public opinion about the security of Apple’s devices, we hope that it won’t put the smaller retailers off adopting NFC. The company is clearly taking security seriously by using the secure element in its phone and watch, and retailers and merchants should feel reassured that NFC is a secure technology.

I wouldn’t be surprised if these announcements turn out to be another example of Apple waiting for others to pioneer a technology before leapfrogging the competition with a simple, easy-to-use solution that everyone wants to use.

  • Neil Garner, founder and CEO, Proxama