Beyond Payments: Three Future Use Cases for NFC Technology

From contactless payments to wearable technology, the bi-annual Contactless Usage and Adoption Study^[1] supported by the NFC Forum, showed that consumer appetite for innovative smart device solutions continues to grow, thanks to increasing familiarity and comfortability using NFC technology.

While digital payments continue to be the most prevalent use of NFC among consumers, we’re seeing users increasingly embrace new use cases for the technology to enable convenience in all areas of their daily lives. Today, consumers are extending their mobile wallet use beyond payment cards, storing other items including transportation tickets (89%), event tickets (87%), and membership cards (84%). Tomorrow, use cases are set to proliferate, with the survey showing consumers are enticed by the prospect of using NFC to enhance their lives beyond the mobile wallet. So, how this will look in action?

1. One tap; multiple actions

Multi-purpose tap is an emerging concept which will allow users to complete all required elements of a transaction in a single tap of their NFC device. A payment can be made, correct discounts applied, receipts delivered, loyalty points given, and more, all with the single tap of a smart device. By streamlining the payment, loyalty, and membership process, multi-purpose tap has the potential to deliver the ultimate consumer convenience – perhaps this explains why multi-purpose tap was the technology that featured most in consumers’ top 3 desired future NFC innovations, selected by 63% of survey respondents.

2. Wireless charging

The NFC interface within a smartphone can also be used to transfer power to small devices. This use case is growing in popularity among consumers – 74% of survey respondents said the ability to use their personal mobile device as a power bank through NFC wireless charging would positively impact their decision to purchase NFC-enabled accessories, such as smart watches or headphones. Of course, it is unlikely that smartphones will be the primary method to charge these devices, but wireless charging through NFC can offer consumers a convenient alternative if they need to top-up a battery on the go.

3. Sustainability

NFC can support impending regulatory requirements for sustainability, such as the EU’s Digital Product Passport (DPP), as NFC tags and chips already in electronic goods can link products to online DPP data. This gives businesses and consumers reliable and robust access to information on how a product can be re-used, remanufactured, or recycled throughout its lifecycle. 56% of survey respondents listed this ability to tap a product and receive additional product information as one of their top 3 desired future NFC innovations, with almost a quarter (23%) listing it as their first priority. Sustainability is clearly a key consideration for consumers and there is growing understanding for how NFC integration can help drive more circular economies in this use case.

Reaching the full potential of NFC

NFC has long since established itself as an enduring, trusted technology, advancing innovation in every ecosystem it touches. Like any enduring technology, NFC must continue to evolve to meet ever-changing market needs. However, for future, innovative NFC use cases to be successful, reliability and interoperability are key. Consensus-based technological standards are critical to create common quality and functionality baselines, which requires cross-industry collaboration and cross-partnership engagement. Setting these standards through organizations such as NFC Forum is therefore not a luxury, but essential for NFC technology to reach its full potential.

Download the full study / listen to our recent webinar on the findings to learn more.

[1] Conducted by ABI Research