This week, I was briefed by a Senior Planner to investigate the current market for contactless technology with the financial services industry. This involved researching how contactless technology worked? Who were and how many retail outlets/ merchants worldwide supported contactless payment cards and, assessing future trends in contactless technology’s performance and development.
Contactless Card Technology
At the initial briefing I had a decent understanding of what contactless technology was. From experience using preloaded payment cards such as the Oyster and previous work experience on the roll-out of Barclaycard Freedom. A reward scheme designed to increase the frequency of Barclaycard customers using contactless payment when making low-ticket transactions. In 2009, at the launch of Barclaycard Freedom, the scheme was considered innovative due to being the first UK reward scheme to offer customers ‘reward money’ instead of vouchers or points. And, similarly the first to reward small to medium retailers, by offering access to a ‘reward money pot’ that funds targeted offers such as double reward weekends to give customers more value. These initiatives were developed to benefit retailers by raising awareness of their business in the local community and increasing loyalty amongst Barclaycard customers.
Near Field Communication (NFC) works on short-range wireless connectivity technology, that allows a device such as a mobile phone to collect data from another device or NFC tag at close range - basically a 'Contactless Payment Card' integrated into a phone.
Near Field Communication
Whilst undertaking the research; I realised, since working on the launch of the Barclaycards contactless payment card in 2009. Developments within the contactless payment industry in the last 3yrs have gathered pace, faster than I had anticipated. Shifting from process innovation strategies that raised awareness of the new contactless technology from a grass root level. To various industries from telecoms to financial providers now seeking to integrate the next step of the technology - Near Field Communication (NFC) into their business models. With sole objective of simplifying transactions and adding value to the customer experience. By providing consumers with a practical, convenient, flexible and secure alternative to cash and sharing information. A key example is the Barclaycard and Orange partnership; which offers contactless mobile payments allowing customers to keep track of their finances via text alerts and quickly make purchases of £10 or under wherever a contactless symbol is displayed. Additionally, customers can earn reward points with every purchase they make. The Barclaycard and Orange partnership is interesting as it's a long-term strategic partnership aimed at introducing a broad range of mobile, financial and payment service that will lead to revolutionising the way UK consumers make payment transactions in the future.
The Future... Touch to Play
Overall I'm pleased I worked on this brief, because now I have a more solid understanding of contactless technology. That makes me excited to see where it will lead in the future across other industries. As trends predict that its not only banks and mobile phone companies that are seeing real potential and advantages in NFC technology. As a keen gamer, I'm most looking forward to seeing how the gaming industry harnesses contactless mobile technology. I imagine, in the not so distant future. NFC displays will act as social hubs that advertise applications or games to the point that it will be common place for mobile user/ gamers to be interacting with NFC displays set-up in public locations such as underground stations, shopping centres or pubs. Essentially, NFC displays will be catching the attention of passers-by and encouraging spontaneous interactions between people for either a short play or an out-right competition whilst they kill time waiting for a train.
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NFC Prototype Whacker-Mole- Game Source: Gregor Broll, (2010) |
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