How will NFC and the Internet of Things work together?
The Internet of Things (IoT) is the biggest topic in the tech industry these days. The concept of connecting all devices — whether they were designed for communication or not — to the Internet is an exciting prospect with great potential. The number of worthwhile applications this technology can have in both the business and consumer realms is virtually limitless. It could end up having a dramatic impact on payments as well, provided that NFC technology continues to penetrate the market as the Internet of Things grows.
Apple CEO Tim Cook and his team made a number of exciting announcements when the company unveiled the iPhone 6 and iPhone 6 Plus on September 9. One was Apple Pay, the company's new payments system that will take advantage of the NFC technology now being implemented into Apple's mobile devices. The other was the Apple Watch, a wearable mobile device set to release sometime in 2015. The watch will feature Apple Pay, so users will be able to simply swipe their wrists to make payments at participating retailers. This is the early stages of what could ultimately be a massive NFC-IoT market.
An article in Marketing Magazine recently discussed the potential of the Internet of Things.
"Smart mobile devices are the fastest growing consumer technologies in history," writes Andy Hobsbawm, the article's author. "One consequence is that we're all carrying around the communications infrastructure for the Internet of Things in our pockets. Add to this the rapid innovation in smart labels and packaging technologies – from printed electronics like NFC labels and Bluetooth stickers, to image recognition, and 1D or 2D barcode scanning – and a whole world of previously dumb products can now be made smart."
As we recently mentioned in this blog, Apple's inclusion of NFC technology could be the boost the market needs. As it grows concurrently with the Internet of Things, it's important for merchants to make sure they are prepared to process payments made with all smart devices.