Mobile NFC Services: Adoption Factors and a Typology of Business Models

Mobile NFC Services: Adoption Factors and a Typology of Business Models

Faouzi Kamoun (Zayed University, UAE)
DOI: 10.4018/978-1-4666-1981-4.ch016
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Abstract

The integration of Near Field Communication (NFC) into mobile devices has recently emerged as a disruptive innovation and a strong enabler of a wide range of new mobile applications and services. Yet, despite this great potential, the widespread adoption of mobile NFC services remains restrained. This chapter investigates the success factors that are contributing towards the proliferation of mobile NFC services. It also presents an in-depth analysis of the key hurdles standing in the way of full NFC commercialization, with the caveat that disagreement about the proper business model among the key ecosystem players is currently the major adoption restraint. The chapter articulates the vision of a cooperative model that can enable the sharing of services, infrastructure, cost, and revenues among various NFC ecosystem players. The author also adopts a four-tier classification approach to categorize NFC business models into a number of typologies. Some recommendations for future research are also provided.
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Nfc: An Enabling Technology For Innovative Mobile Services

NFC is a short-range, standard-based wireless connectivity technology, designed to operate over very short distances, typically less than 4 cm for most practical applications, with a maximum theoretical range of 20 cm. NFC operates at the unlicensed RF ISM band of 13.56 MHz, and currently supports data rates of 106, 212, 424 and 848 kbits/second, with higher rates expected in future. The technology is compatible with existing contactless infrastructure and can be thought of as the fusion of RFID-enabled contactless smartcard and a mobile phone (Ondrus & Pigneur, 2007). This allows the mobile phone to act as a smart card reader. To establish a communication between two devices, using NFC, one device (the initiator) must be equipped with an NFC reader/writer, and the other device (the target) must have an NFC tag.

The integration of NFC into mobile handsets enables the mobile device to act as a mobile wallet that consists of three main components:

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