Successful trials encouraged GSMA call for NFC adoption

In a move to push the adoption of contactless payments by consumers the GSMA, an international trade group of mobile operators, is calling for full near field communication (NFC) functionality to be built into cell phones. The Association in turn supports the development by backing the European Telecommunications Standards Institute's 'Single Wire Protocol' to standardize the interface between SIM cards and embedded NFC chips within handsets.

By the moment the GSMA's Pay-Buy-Mobile initiative resulted in pilot projects started in 8 countries across the globe, including Australia, Korea and the US with 9 mobile operators involved. Besides, the Association is planning to launch more trials in other 14 countries with 15 operators. GSMA notes that positive results of several latest mobile payments pilots reflect the increasing demand among the customers.

For example, last year a consortium of French banks along with telcos and technology vendors initiated a mobile payments trial which is reported to bring customer satisfaction rates of above 90%. Similar trial in London that enabled consumers to use their mobile phones to pay for tube journeys and make small value purchases also proved successful with 9 out 10 participants contented with having NFC technology on a handset and 78% interested in using contactless services if available. Orange operator reports a successful experience of conducting mobile payments pilot projects in France, Spain and the UK.