ISIS and NFC is in the news again with the American Express and Chase deal. I've written about this one before and see a looming war between ISIS and MCX. Which will win the hearts and minds of consumers?
The expected September 10 announcement by Apple of the new iPhone will be news for one thing: NFC. Will it be included in the new iPhone or not? If it is the momentum gathering for ISIS will continue. If not, one battle in the war will be over in favor of MCX
Here is another analysis on the subject well worth your reading:
http://www.mobilepaymentstoday.com/article/218301/Will-Isis-NFC-bet-force-merchants-hands-Analysis
Here is a snippet from near the end of the article:
Walmart has partnered with other big box retailers such as Target and Best Buy to offer its own mobile commerce service, MCX, which is unlikely to use NFC because of resistance by U.S. merchants to invest in POS upgrades that include NFC. Merchants already know they will have to upgrade their POS systems by 2015 to accommodate EMV standards. EMV standards are new authentication specifications announced by Visa, MasterCard and American Express to further reduce fraud. The prospect of merchants having to upgrade their POS systems twice in a short time period represents a barrier to NFC adoption.
With recent studies suggesting that more than 50 percent of smartphones in the U.S. may be NFC-enabled by the end of 2014, it seems that Isis is betting on issuers and cardholders driving NFC adoption at the point of interaction with the merchants. It remains to be seen if the merchants will eventually give in.
Here is my previous blog entry:ISIS to Launch Nationwide
Happy reading,
J.W. Gant
**UPDATE** More good reading from the Gemalto perspective here:
http://www.pymnts.com/briefing-room/mobile/mobile-payments/2013/behind-the-value-propositions-nfc-vs-cloud-proximity-payments/
Have a great Labor Day weekend 2013!
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