Contactless Technologies and Google
- According to the Wall Street Journal, Google might currently be working with MasterCard and Citigroup to integrate contactless payment technology in its mobile phones.
- American terminal manufacturer VeriFone would also take part in this project via the deployment of contactless payment terminals in New York and San Francisco convenience stores, then, in Los Angeles, Chicago, Washington and Portland. Its rival Ingenico might be part of this project too, but did not confirm this information.
- As merchants would not be commissioned, Google would be paid by contextual ads displayed the payment transaction.
- Google also has been commercialising the first NFC compatible mobile phone Samsung Nexus S since November 2010.
- Google wants to invest in the deployment of terminals and relies on VeriFone’s, and, maybe, Ingenico’s expertise to do so. This large player’s efforts could lead the different protagonists to agree on a potential business model.
- Ingenico also partners Apple to elaborate a solution potentially designed to turn the iPhone or l’iPod Touch into universal payment terminals. The “ISMP” solution could allow this retailer to accept card and contactless payments, as well as barcode-based payments, via an external device. In 2010, the manufacturer doubled its NFC POS terminals sales figures: they now represent 21% of its total sales of terminals.
- Nevertheless, Apple would finally have decided not to add this technology on its new generation terminals, considering there is no clear standard in this industry and might now be developing a proprietary standard. If confirmed, this decision could lead to more fragmentation in the NFC market: as its penetration rates are high both with the general public and in companies, Apple’s decision might slow down the progression of contactless technologies.
- On 30 March, a publication revealed that Microsoft had adopted NFC technology for Windows Phone. Also, the vendor paid one billion dollars for a reciprocal integration agreement with Nokia in February.