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NFC to become common feature next year

Jack Loo | Nov. 28, 2012
ABI Research says NFC can help create new revenue opportunities for service providers.

ABI Research has predicted that near field communication (NFC) technology will come out of its trial phase and move into mass adoption in 2013.

According to analysts at ABI Research, the lion's share of NFC enablement will be in the handset market, although there will be a surge of NFC functionality included within consumer electronic devices, for simple pairing of devices, exchange of data, and online authentication functionality.

The ABI Research analysts said that the inclusion of NFC into devices other than handsets shows market development and an understanding that NFC will be more than payments.

Added value can be provided through the enablement of convenient online/offline authentication, retail and loyalty applications, reader functionality, and advertising as a host of value added opportunities presented to service providers from which they can draw new revenue streams.

The increase in potential user base is making investment into NFC applications more justifiable. ABI Research analysts have also observed that operating systems Android and Windows 8 are already pushing the handset market forward and now building out into other ecosystem devices with inclusion into Android tablets and Windows PCs.

"Nine out of the top 10 OEMs now have NFC-enabled handsets commercially available, with most housing an embedded secure element solution," said Phil Sealy, research analyst, ABI Research. Next year will also see NFC becoming a default technology integrated into flagship handsets, he added.


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