The banking remains one of the biggest appeals for the adoption of NFC (Near Field Communications) in Brazil, says a study released by the GSM Association (GSMA), this Wednesday, 18/01, in São Paulo. In the survey, produced in partnership with Booz & Company, the entity also points out that the Olympics in London this year, will have a strong impact on the consolidation of technology, which allows, among other things, the mobile payment securely.
report argues that the use of NFC in mobile phones is the best way for
the Brazilian population has no access to banking services. That's
because for a large portion of the population, the ability to take
cards stored in their phones for ease of payment is a much more
attractive option than having to travel long distances to use regular
bank branches and ATMs.In
addition, the Brazilian middle class consumers are also increasingly
likely to adopt the NFC because of its ability to integrate the core
value proposition with other digital consumer products, such as loyalty,
social media, and location-based services (eg, coupons).
that the NFC is a technology that allows two wireless devices - that
are inches away from each other - to transfer small amounts of data
technology allows for payments for goods and services such as tickets,
entertainment tickets and identification, transforming the phone into a
the retail sector, the study indicates that benefits are concentrated
on how NFC can improve their relationship with their customers and
retailers have more efficiency in their cost margins. Stimulating
the volume of transactions through the segmentation of the distribution
of coupons and advanced data analysis, the NFC may increase the
existing sales channels in the retail sector through the following
• Increased sales by retailer• Increased ability to reach consumers at the point of decision• seamless user experience• Improved data around customer segmentation and analysis of sales• Market segmentation tools that optimize sales campaigns
In addition to stimulating the volume of transactions, NFC has the potential to offset the operating costs of retailing. Centered
on the costs associated with queuing, for fraud and manipulation of
money, the NFC has the potential to create operational efficiencies,
• Reduction of queues due to the reduction of time at check-out• Reduced operating costs due to less need for staff• Reduced fraud due to a greater use of authentication and auditing• Increased consumer awareness in relation to the theft of handsets• Reduction of cash handling by changing the physical to electronic payment
the costs of implementing upgrades concentrated mainly on points of
sales, direct benefit to retailers can be significant, since there is
sufficient scale and infrastructure for NFC transactions in the market.
scale and its infrastructure are being built steadily in Europe, where
Visa and MasterCard have aggressively expanded its base of devices and
contactless terminals. Its
strategic partnerships for PayPass and payWave with large networks,
such as Krispy Kreme, McDonalds and Subway, have been a source of quick
success and is an important basis for the expansion of retail acceptance
There are also a number of other specific initiatives. Of
these, the research points to one of the most interesting in the
accelerated adoption of point of sale terminals and contactless
development of its infrastructure in London, before the 2012 Olympics. This effort has taken place through close collaboration among various players.
sponsorship of the underground system for London Underground, Visa's
sponsorship of the Games and the proactive engagement of the major banks
in the country shows how intersectoral collaboration can set the stage
for more rapid and widespread development of infrastructure.
led to the cooperation not only between banks and processors, but
between the central and local, who combined their efforts to generate
momentum for contactless payments in different sectors. Although
it represents a local initiative, efforts and visibility associated
with the London Games have the potential to validate different aspects
of the value proposition and give more weight to global models go to
initiatives in Australia such as MasterCard PayPass, are driving the
adoption of new points of sale terminals and could serve as an important
kickoff for the adoption of NFC. These
initiatives suggest that the rate of implementation could grow because
MasterCard announced that from October 2012 all cards issued in
Australia include PayPass contactless technology.
SecurityParticularly with regard to fraud, research indicates that standardization can reduce the net liability of retailers. NFC can reduce fraud in three ways:
are more aware of the loss or theft of mobile phone than the loss or
theft of cards - accelerating time communication devices associated with
made in the cell are safer than those made with cardboard due to
multi-factor authentication (since mWallet have this protection.)
If the account is compromised, the core platform NFC provides greater
visibility into unauthorized transactions and greater ability to
eliminate the information security apparatus.
For the consumer are also pointed out a number of benefits, particularly:
for consumers: the NFC enabled device can be used to transport tickets
in all markets, ensuring ease of use for consumers. For example, a consumer uses NFC-enabled handset to pay for a ticket to use public transport on a trip to a London airport. At the airport the consumer utilizes the handset again to board the plane. After arriving in Madrid, the consumer uses the handset again to buy a metro ticket in Madrid. Throughout
the trip the customer experience is exactly the same as reducing the
need for queues, dealing with different types of tickets and money.
competition leading to benefits for consumers: mobile NFC reduce the
barrier to access for small service providers with no economies of scale
in relation to major players in the market. This leads to greater competition, more choice for consumers and lower prices - all the benefits to the consumer.
portability: the SIM-based solution enables the deployment of various
services by downloading applications and ensures a full-service
portability - the user can have their services even when they change
carriers or handsets.
security: handsets and SIM-based NFC enabled to benefit from strong
security features, such as PIN numbers to access services, strong
authentication techniques to protect the mobile wallet (such as digital
signature, OTP), as well as the ability
of operators to enable or disable services "over the air" if the
handset is lost or stolen and reinstall the OTA every time a handset is
replaced by another.