It is interesting that Google and Apple’s decision to jump into the NFC industry has caused other players to spin around towards NFC. In fact, NFC is just one of many network technologies that has been utilized as mobile payment and other services for several years now.
A few days ago, there was news that Apple may release iPhone 5 without a NFC chip. But Apple still appears to have a great interest on NFC services, and some experts have anticipated that Apple may be developing its own payment platform based on iTunes. Anyway, while Apple is making its way under the water, Google has a chance to build its business without a powerful competitor.
By now, Google’s plan is apparent that it is testing a tag-related service and payment model. Those testings are still on early-stage, so it’s not yet time to decide whether the testbeds are effective or not. But regardless of the boom-up timing, it needs to speed up its preparation to be launched as a business. I think execution speed and timing is important in grabbing the opportunity in the NFC industry because there is no one else who has created an ecosystem based on NFC. If we can define that a domestic model is not suitable for making a real ecosystem for expanding its services area like iTunes, Felica is not an exception. In fact, NTT DoCoMo recently tried to adopt a NFC technology.
Google’s Hotpot Tag
What is the key factor in a NFC-based industry? From mobile wallet to data sync program via P2P, most applications and services are under testing stage. And some players get implications from their testbed services. And those implications are narrowed down to two key factors for a successful NFC service, 1) distributing Infrastructure such as a dongle, NFC embedded phone and 2) setting up an ecosystem which core players collaborate.
We know that infrastructure is a precondition for NFC-applied services and it will take at least several months to reach the minimum distribution rate for activating a NFC service. Though mega-manufacturers announced that they will adopt a NFC technology in most smartphones, it will take more time. Rather, a more urgent issue is allying with distributors or SMB(Small-medium size business) proprietors. For this alliance, a service provider needs to make a new NFC value chain such as mobile commerce and promotion service which distributors are participating. And Google is doing it. This diligent and incessant action seems slow but adamant.
It is time to decide and execute the model.