Seoul Introducing NFC Enabled Shopping Area
- The Grand NFC Korea Alliance, encompassing South Korean mobile operators, card networks, phone manufacturers and governmental agencies, has opened a mobile NFC-enabled area in the shopping district of Myeong-dong (Seoul). This initiative will include contactless payment (at over 200 stores), mobile smart ordering (for restaurants for instance), couponing, loyalty (points), interactive posters, paperless receipts and even real-time information (transportation, products, events, etc.).
- A three months test period is currently taking place and should carry on until the end of January 2012. Other experiments will follow (including the addition of NFC P2P funds transfers for independent merchants and ticketing apps).
- This large scale appropriation of the NFC technology shows a wide range of possible development opportunities. South Korea’s interest in these technologies has long been noted; the evolution suggested in October 2010 by Celent is here taking shape (boom of the NFC and creation of a dedicated association –including operators and card networks) –see October 2010 Insight). Deployment efforts are obvious.
- The Grand NFC Korea Alliance has been designed by the Korea Communications Commission (KCC) in June 2011. It aims to promote NFC deployment and make the best of it: profit and growth perspectives (this market has been assessed at one billion dollars by the KCC and could generate 5,000 more jobs).
- Also, in the beginning of December, the telecom research institute ETRI has released a standard for Korean merchants explaining how to set up mobile NFC receipts. Operators KT and SK Telecom, as well as BC Card network also contributed to this project (they are also part of the Grand NFC Korea Alliance). These receipts can be proposed for all payments (debit, credit or prepaid cards) in stores and kiosks. They can just as well be applied to loyalty programmes, etc. (consultation of acquired points).
- This initiative has been crafted around NFC services (and does not only rely on payments). It might recall one of EasyMove’s approach in France and asserts the success of overall NFC coalitions to encourage its use and improve its business model.