NFC Business Models report sets out strategies for success in the emerging mobile wallet wars

Monmouth, UK — 27 January 2011: A new generation of mobile phones equipped with near field communication (NFC) technology is set to revolutionise the way we decide what products to buy, where we choose to buy them and how we choose to pay, according to ‘NFC Business Models’, a new research report published today.

The new NFC phones contain a high security chip known as a secure element which acts like an electronic version of your wallet and can be used to replace everything from credit cards and loyalty cards to bus and train tickets, library cards, door keys, coupons and even cash.

The tiny secure element chips can be built into mobile phones and other devices by the manufacturer, they can be integrated into SIM cards issued by mobile networks to their subscribers and they can be added to existing phones via special microSD cards or stickers issued by banks and other organisations.

“Whoever provides a consumer with a secure element can then generate new revenues by leasing space on the chip to other businesses that also want to offer next-generation mobile services to their customers,” says Sarah Clark, author of ‘NFC Business Models‘.

“Mobile network operators, banks, handset manufacturers and technology providers around the world are all planning to create major new revenue streams by providing consumers with these mobile wallets,” she explains. “But understanding of the business models that are most likely to succeed is still in its early days and there will be winners as well as losers in the NFC revolution.”

‘NFC Business Models’ explains in detail the latest thinking from around the world on how to implement the five fundamental building blocks required to make an NFC service a success. These are: the core infrastructure that will form the backbone upon which NFC services are delivered; the business models available to the mobile network operators, banks and handset manufacturers who will provide consumers with their mobile wallets; the issues involved and strategies for success in the NFC payments market; gaining buy-in from consumers and from service providers; the launch strategies that are most likely to succeed.

The ‘NFC Business Models’ research report addresses key questions facing the industry today including:

  • How can merchants be persuaded to adopt the contactless payments terminals required to support NFC transactions?
  • What are the benefits to banks of providing NFC services — and do the benefits outweigh the costs involved?
  • What kind of pricing models will need to be offered to service providers — and will they be sufficient to cover the costs of developing and making available an NFC service delivery platform and of issuing NFC devices to consumers?
  • Will consumers be willing to pay for an NFC mobile wallet? And what kind of services will they want to use?

“Many companies are looking to profit from NFC,” says Clark. “Global organisations like Apple, Google, Visa, PayPal and Facebook are all working on the technology, along with retailers, travel firms, public transport operators, financial institutions, brands, car manufacturers, security firms, central and local government, marketers and advertisers — even your local supermarket.

“The stakes are high and success will rely on meeting the needs of three key groups — consumers, merchants and the widest possible range of service providers,” Clark explains. “The companies that succeed will be those that take the time to gain an understanding of the needs of each of the parties involved and then design an infrastructure that provides a win:win:win solution for all.”

‘NFC Business Models’ provides companies looking to benefit from the arrival of NFC with the information needed to understand the issues, identify their options and develop a strategy for success. The 170-page research report is available to purchase today for £797 (US$1,258/€924).

Further information, a full table of contents and online ordering facilities are available at

Note to editors

A copy of the executive summary, including the key findings from this new report, is available to journalists and bloggers on request. Sarah Clark, the author of ‘NFC Business Models’, is also available for interview.


Mike Clark, publisher at SJB Research
Tel: 01600 715994 01341 760123 (International: +44 1600 715994 +44 1341 760123)
Email: [email protected]

Publisher website:
Report website:

Mobile phones to begin replacing cash from 2011

Monmouth, UK — 14 January 2010: A new mobile phone technology called near field communication (NFC) will begin to replace traditional wallets and purses from 2011, according to a new research report published today.

Banks and mobile network operators will both be seeking to make money from the introduction of the new mobile payments technology, the report predicts, and are set to go head to head in a bid to gain control of the market.

“NFC technology will be used to replace everything from credit cards and loyalty cards to bus and train tickets, library cards, door keys and even cash,” says Sarah Clark, author of NFC: The Road to Commercial Deployment. “What hasn’t yet been decided, however, is who will win the battle to provide consumers with their new hi-tech mobile wallets.”

The UK, France, United Arab Emirates, Singapore, Taiwan and Korea will be the first countries to get the new mobile wallets, the report predicts. The US, Canada, Spain, Germany, Italy, Norway, the Czech Republic, Romania and Australia are also expected to be early adopters of NFC.

Businesses ranging from retail and travel to fast food, consumer goods, tourism and entertainment are all expected to be affected by the arrival of NFC services. Government and educational service providers will also be impacted by its arrival.

“Decisions made in 2010 will be critical in determining which mobile network operators, which banks, which industry suppliers and which service providers become the leaders in the field,” she adds. “Ultimately, only two or three companies in each country will succeed in building a major new business providing NFC services to businesses and consumers. The winners could be banks or mobile operators, or even a new entrant to the market.”

Consumers with NFC-enabled phones will be able to simply touch their phone to a ‘smart’ poster or product label containing an RFID chip to sign up for a loyalty programme, collect a money-off coupon, download a trailer for a new movie, access the latest travel information or go straight to a product’s website to read customer ratings and reviews and compare prices.

Social networks will also get a major boost. With an NFC phone, you can friend someone online when you meet them in the real world by simply touching your phones together. Or touch your phone to a smart poster as you go into a restaurant to automatically update your Facebook status and get an offer coupon from the venue as a thank you for telling your friends you’re there.

Commuters will be able to store their travel pass on their phone and mobile versions of airline boarding cards, hotel room keys and even passports will make it quicker and easier to get from place to place. Paying bills will become much simpler, too. Simply touch two NFC phones together to transfer money to a friend, buy a drink or pay for a service.

“No more rummaging around for the right change, card, keys or paperwork and no more texting your location to your friends — with NFC everything can be handled by your mobile device,” says Clark. “And, of course, NFC is a highly secure technology. Consumers will be able to instantly lock all the mobile wallet services on their phone if it is lost or stolen and then get them automatically transferred onto a new phone as soon as it arrives. They will also be able to use their phone to make payments even when the battery is flat.”

‘NFC: The Road to Commercial Deployment’ examines the international market for near field communication technology from 2010 to 2014. It is published by SJB Research, a UK company specialising in analysing the market for emerging technologies in the mobile and payments fields. SJB also produces the international industry news website Near Field Communications World.

The report provides detailed guidance for banks and mobile operators looking to introduce NFC successfully and for companies wishing to offer NFC services to their customers. It includes an analysis of the technical and business challenges that still need to be resolved and explains how mobile operators, banks, handset manufacturers, industry suppliers and key potential NFC service providers will resolve those issues during 2010.

‘NFC: The Road to Commercial Deployment’ explains the key factors that will decide which companies will become the mobile wallet market leaders and details what the first NFC services will need to offer in order to succeed.

The research report is available to purchase today. Further information and online ordering facilities are available at

Note to editors

Information on the impact of NFC mobile wallets for particular industries and in particular countries is available to journalists and bloggers on request. Sarah Clark, the author of ‘NFC: The Road to Commercial Deployment’, is also available for interviews.


Mike Clark, publisher at SJB Research
Tel: 01600 715994 01341 760123 (International: +44 1600 715994 +44 1341 760123)
Email: [email protected]

Publisher website:
Report website: