NFC Coming to More Smartphones


NFC (near-field communication) may seem like just another obscure acronym, but it may soon be an everyday occurrence in your life. The term refers to a way of transmitting data over short distances, usually between a smartphone and a payment terminal of some kind. As NFC becomes more common, it may even displace credit and debit cards for a number of purchases.

In fact, a recent report from Pyramid Research,, says more smartphones are shipping with NFC capabilities. The analyst firm claims by 2015, NFC-enabled smartphones will make up 28% of all smartphone sales to end users.

“Mobile handsets that are NFC-capable will see skyrocketing sales in 2011 and 2012,” says Stela Bokun, Mobile Devices practice leader at Pyramid. “These sales will be driven by the overwhelming supply of NFC-enabled smartphones that will hit the market in the next two years, as well as service providers’ ‘push’ marketing strategies across the globe.”

In addition to smartphones, the devices used by retailers to accept payments will also see strong sales, says Pyramid. Not surprisingly, the firm also indicates the majority of demand for NFC-enabled devices will be seen in Asia/Pacific, Western Europe, and North America. Bokun says, “89% of the total NFC-enabled handset unit sell-through will come from these three regions in 2015.”

However, Pyramid Research makes the point that for NFC to succeed, end users need to be convinced of its benefits. It will likely be up to retailers to convince customers that using NFC to make payments is secure.

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