Consultancy Logica warns of introducing NFC solutions too soon

As industry chatter surrounding mobile payments becomes even more energised, a leading consultancy has warned that it is too early to launch NFC-enabled devices and apps prior to global standards being finalised. According to Logica, a business services consultancy, companies rushing to make products and services that initiate m-payments could be harmed if they fail to meet consumer expectations.

"There are a lot of people working very hard developing m-payment apps, and if they don't work well, people won't embrace them," Jerry Norton, managing director of financial services at Logica UK, told Cards International. "The problem comes when technological capability overtakes consumer demand, and products are launched."

According to Norton, developers are pushing forward with their development plans to ensure they are one of the first to market. "Companies are trying to circumnavigate banks without appreciating how difficult that actually is," he said.

The exec also pointed to the late 1990s when there were nearly 50 different online payment applications in operation.

"If you looked now at how many survived, I think the number would probably be one," he said. "Many were good ideas but the companies developing them didn't understand how much they needed the involvement of banks, and the same thing is happening now in m-payments."

This warning from Logica came shortly after the O2 Telefónica Europe CEO Matthew Key dropped a heavy hint during his keynote speech at the CeBIT conference in  that e-wallet services would shortly be introduced in the UK. The service, which is already in operation in Germany and Kenya, would include direct-to-bill and peer-to-peer payment facilities based upon NFC technology.

"We see ourselves being an aggregator of services and payments. As a mobile business we are uniquely positioned," Key said, according to V3. "Telefónica across the world has 190 million customers, and we know everyone's payment history and credit references." 

For more:
- see this Cards International article
- see this V3 article

Related Articles:
Supermarkets preferred for m-payments, claim trial results
Dutch banks and operators agree to common mobile payments platform
O2 searches for new m-payments partner
French operators to deploy 1m NFC phones in 2011
Coca-Cola vending machines to accept m-payments in Belgium and Luxembourg

Suggested Articles

Wireless operators can provide 5G services with spectrum bands both above and below 6 GHz—but that doesn't mean that all countries will let them.

Here are the stories we’re tracking today.

The 5G Mobile Network Architecture research project will implement two 5G use cases in real-world test beds.