Blog Archives

NFC beyond payments


The spread and adoption of NFC seems to be gaining momentum in the industry, with a number of terminals either supporting or having the intention to support the technology. With the exception of Apple, who still have to make a move in this space, most SmartPhone manufacturers are already shipping NFC-enabled devices, updated list can be checked here.

With strong support from key industry players like Visa or MasterCard, and with Google redefining the whole payments ecosystem, the late 2011 and early 2012 will see the consolidation of NFC as a standard feature in mid to high-end SmartPhones. Yet more to see if Apple decides to include the technology in their yet-to-be-seen iPhone 5.

While contactless payments will continue to be the source of growth for a number of years, however there are many other uses and applications that are strongly emerging, which promise a bright future for this technology. NFC is here to stay.

SmartPhones have been gradually conquering other devices space, replacing your agenda, phone, photo and video camera, business card holder… and even computer with very advanced applications being available out there in the respective appstores. The next thing to come is clearly your wallet, changing your old-fashioned plastic credit cards for their virtual counterparts.

Cash Cards have been successfully implemented in some markets, whilst others are still hesitant to make use of them. The burden of balance top-up is still something to be resolved. NFC can boost the usage of these, as they are really convenient for day to day micro payments where a contactless, signatureless payment can be really convenient. Vending machines, public transportation, paying a taxi or your coffee at Starbucks are likely to be done with a cash card, which now you will be able to store in your SmartPhone. And guess what, recharge it directly from your banking account too!.

But there is room for NFC beyond payments.

Merchants offering loyalty cards, with or without stored value can benefit of this technology. You have loyalty cards from a couple of airlines, half a dozen hotels, your favorite coffee shop and a myriad of other merchants. Now all of them can fit comfortably in your NFC-enabled phone, and you can easily track your points, miles and rewards easily in one single place.

Access Control through NFC

Access Control through NFC

Access control

Modern houses use cards and readers to access doors and gates instead of traditional keys, pretty much like you would see in any hotel. Wouldn’t it be nice to use your SmartPhone to access home?. And it would not stop here, home automation might be one of the next things to be conquered by your SmartPhone, so start guessing the possibilities here.

Anywhere requiring identification in the form of a card can benefit of NFC for access control, so will no longer have to carry your identification badge with you. Your phone does.

Information sharing

The next best thing is information sharing. In the era of Social Media, it is all about sharing. Also in the physical world, where you are likely to exchange your business card when you meet someone, give your phone number or your facebook profile to someone you just met, or leave your card to participate in the next lucky draw. All of them can now be done by putting your phone close enough, so you can transfer your contact details, social media profiles or leave a reduced version of your contact details on a merchant. How many times have you been asked to write down the same contact details on a hotel at check-in?. Guess what, never again.

And the last, yet best

Angry Birds Magic

Angry Birds Magic

It had to be Rovio and in had to be Angry Birds to give us the latest example of NFC. The latest version of their ultra-popular game, still only available on the new NFC-enabled Nokia C7,

allows gamers to contact other gamers to unlock new levels of the addictive game. Fun?.

Advertisements

Does Apple bet for NFC?


There is something I quite missed on today’s Apple event. It was not Steve Jobs, and it was not iPhone 5. Actually, whether it was an upgraded iPhone 4 (as it finally turned out to be) or the long awaited iPhone 5, the feature I really missed is the NFC chip built into the latest object of desire.

NFC Enabled Phone

NFC Enabled Phone

Taking a look at the recent movements by Google, announcing Google Wallet and Offers, which create a whole ecosystem to make the most out of the NFC hardware, as well as the list of

iPhone 4S

iPhone 4S

manufacturers announcing -or even shipping- NFC-capable phones, it is surprising that Apple chose not to make a move on this space. The whole set of actors in the industry, from hardware and software manufacturers to card issuers, financial institutions and merchants are positioning themselves on what looks like one of the next big things in both Mobile Technology and Financial Services.

Apple is known for not leaving anything to chance, so either they do not believe in NFC (clearly unlikely, considering the push and support the technology is getting) or they are preparing something really big that is worth waiting for their next generation SmartPhone to be unveiled.

So is Apple preparing a move similar to Google’s in this space, by combining the hardware -probably linked to the iPhone 5 launch sometime next year- with a complete ecosystem of applications and platforms to cover the whole, end to end payment experience?. Is it wise for Apple to reach the market at least half a year later if they want to have a predominant position in this space?. Time will tell, but it looks that either they have an ace under their sleeve or it will be a big leap to cover if they wait for iPhone 5 to step in.

App Stores in the Enterprise?


App Stores

App Stores

The App Stores are one of the key pillars on which the SmartPhones have built their success. Not that mobile applications where only introduced at the time the stores became available, but they solved nearly all of the issues that existed until them.

First, it was very difficult for developers to find customers, and for customers to find the applications they wanted. This also discouraged many from investing time, effort and money in developing these native applications, which resulted in a low number of available ones.

Second, all the logistics of applications installed in devices rather than browsed from devices where not solved, in some cases falling into the traditional burdens of software distribution. Installing, uninstalling and specifically maintaining your applications up to date was not an easy thing to do.

Last, but not least, charging for the apps meant each developer had to find a solution for managing the payments, with PayPal having been a traditional partner on this space.

But suddendly these App Stores arrive, and buying applications becomes as easy as buying any other article online, making the installation and uninstallation of applications as easy as 1-2-3, and more importantly, you no longer need to worry about keeping your software up to date. The App Store will tell you and let you update what you want, when you want it. Easy right?. Bringing developers and consumers to a single place has also boosted both the availability and consumption of applications, with numbers of applications in the hundreds of thousands.

So are these new stores the panacea for software distribution?. I suspected so, and I kind of confirmed it when Apple launched the App Store for Mac. The concept is reaching the desktop. So this is when things get interesting. Can this be applied to your corporate environment?. I hope so.

Distributed computing

There are a number of issues typically associated to large estates of PCs usually running Windows.

First, one size does not fit all, so you will face different users with different software needs, meaning that you will need to find a balance between standardization (critical to keep support and maintenance costs under control) and the specific needs of your user communities.

Second, you will have to automate as much as possible the possible of provisioning applications upon users requests, and more importantly, keep an inventory of all of this, as you want to know who is using what to avoid any licensing issues.he

Cost. This is usually tackled by complex approval processes which in the end do not really cap the amount of money a user spends on software which is likely to be rarely used.

And not to talk about software updates and patching.

When you look at these traditional issues, it seems miraculous that the App Stores have achieved to resolve most of this issues for a wider, more diverse crowd than the one in any of the Company.

Applying the concept

So how about delivering vanilla desktops or laptops to your employees, and giving them a budget according to their profile?. If a concept such as an App Store could exist in the corporate environment, users could have a budget to spend there. Go to the supermarket, choose what you need and install it. You are running out of budget? Maybe you can return to the App Store that application you downloaded which no longer you are using.

This, if tied to an inventory of licenses, will surely help software costs under control on a very predictable manner, while giving a much better user experience. Your users are now autonomous and can self manage their software, which would also have a very positive impact in your helpdesk and engineering budgets.

Did I talk about software updates and patching? How much money do you spend on that?

I am sure there are lots of challenges to be solved before such a concept can be applied completely in the Enterprise world, but after seeing what Apple has achieved with the Mac App Store I am hopeful it will come…

OS Wars vs Patent Wars


The Patent Wars

The Patent Wars

The holidays are now over, so time to resume the activity after the holiday break. However, August has not been as quiet as it normally is, at least in the Mobile Industry, well, it was, until Google announced by mid month that they where acquiring Motorola’s mobility to seriously jump into the hardware industry and give yet more power to the Android platform they have been developing over the last few years. Although boosting Android (see stats below) is the main official reason behind the operation, Motorola’s vast portfolio of patents has surely played a role in the decision, specially after the war started earlier this year when Apple and a number of other manufacturers, including Microsoft and RIM teamed to acquire other patent portfolios, something which was publicly criticized by Google.

This comes in a moment where Android is clearly becoming the rival to fear for Apple’s omnipresent iOS powering their iPhones and iPads. While SmartPhone sales rocket literally on every market, Android surpassed iPhone in market penetration on a global basis, after it had already done so in the US in November 2010. If we include tablets into the equation, Apple still leads the way.

But not everything seems to be a honeymoon after Google’s announcement. Even though Google claims to have gained agreement with the main phone makers using Android, looks like behind the lines some of them are not too happy about Google entering into competition with them in their traditional marketplace. Maybe casually, only two weeks later Samsung announced a new set of devices using the Bada Operating System, the Waves Y, M and 3.

Probably this will not mean that Bada will gain enough market penetration to threaten Android’s leading market position, but from an application development and marketing perspective, definitely is something to keep an eye on, as this could potentially degrade into an OS war.

When facing the marketing, product definition and development of a mobile application, one of the key decisions to take is the platforms to support. Every business will have different target audiences, and the multiplicity of platforms has a great impact on the total cost of ownership of the mobile software products companies provide. It is not only the different skills needed for development, but also the different user experiences that each platform provides, as well as the increasing complexity of testing, customer support, incident management, etc. This is clearly being a barrier for some other platforms to gain growth in the number of available applications in their respective application stores and markets, as corporations will need a minimum number of customers to justify the development and maintenance costs for a specific platform.

Time will tell wether this evolves into an OS war, or wether the market continues the consolidation under the two -for the moment- winners.