I have been hearing lots of chatter in the tech world regarding the rise of NFC (near field communication) technology in the mobile market, and I have concluded one thing: this is the future of quick merchant transactions. For many people, the wallet will soon be obsolete.
The basis of this conclusion is not from first hand experience. I have not even seen Google Wallet in action yet. What I do know is that the ubiquity of smart phones, and how they have become a central hub for content in our daily lives has created a perfect recipe to combine the two things many people have on them at all times.
A little over a year ago, I started seeing this new iPhone case which contained a slot in the back to store your credit cards. Many of my friends eliminated the need for their wallet because they simply slid their credit cards into the little slot, thus consolidating down to just one item. NFC essentially takes that concept even further, and turns everything digital into just one device.
Japan adopted this technology years ago, and they use it for train passes, and even to pay for snacks at vending machines. The progression of NFC over to North America has been quite slow, but Google has really taken the helm here and is ready to get Google Wallet out on all of their future Android phones. Visa has also jumped onboard the NFC train with their new Visa Wallet product.
I think the tipping point for NFC payment technology will be when Apple includes it in the iPhone. With the soon-to-be-announced next generation iPhone, we just might see a NFC chip embedded inside. If not, I think there is still great momentum in the space, and Apple is sure to jump onboard at some point.
Until then, we will keep using the archaic wallet, but know that you soon just might be waving your cell phone to pay for that bag of Cheetos instead.
