TfL “Not Convinced” By Mobile NFC

What's Next In Payments®
4:32 PM EST February 19th, 2013

Transport for London has been considered a pioneer in the field of NFC and is currently the largest contactless card issuer in the UK with their Oyster cards. Recently it crossed over the border to payments, by beginning to accept contactless payments directly through NFC-enabled debit and credit cards.

“This is quite a revolution. Whether you’re a visitor from abroad or in the UK, whoever you are, get the card out of your pocket and tap it on the reader and travel. So TfL becomes like every other merchant, charging at the end of the day for how much travel you’ve made,” said Matthew Hudson, head of business development for fares and ticketing at TfL.

However, when asked about the possibility of the same technology being used through phones on Oyster terminal, TfL was not sure about doing it. Hudson said he was “not convinced” about mobile NFC payments for London transport and said the process would be too complicated as there are too many stakeholders.

“It’s taken ages. How much money is there to make with all these parties trying to get a piece of it?,” said Hudson, “We’ve just sat back and said we’re not interested. When you’ve worked it out come back to us and we’ll engage,” he added.

While the reluctance to adopt mobile NFC payments might more a fear of losing on Oyster customers, Hudson does point to a critical issue when it comes to mobile payments rollout. NFC mobile payments involve the participation of banks, retailers, mobile networks, device manufacturers and advertisers, who will all be sharing the revenue. With such a small percentage for each party involved, it is hard to make the technology take off. This has been pointed out as one of the reasons behind Apple’s absence from the NFC train.

Read the original story here.

Also by This Author
What's Hot
Merchant Innovation
“Shazam for Fashion” Launches Stylist App
Samsung’s Double-Barrel Galaxy S6 Launch
Consumers Go Mobile For Smart-Device Research
Merchant Innovation
Will Half Of All Americans Be Amazon Prime Customers By 2020
View All Articles ››
You May Also Like
Company Spotlight
Different mPOS Strokes for Different mPOS Folks
Digital River Offers A Sneak Peak At Mobile eCommerce Trends
Mobile Commerce
Trustwave Buys Cenzic To Beef Up App Testing Capability
The Shortlist – Get To Know Them Today, You’ll Be Talking About Them Tomorrow
B2B Payments
B2B Meets The Cloud: The Evolution of Payments
B2B Payments
ING Boosts B2B E-Payment Services with Basware
B2B Payments
Wonga Chooses Buyer for Nixed Business Lending Unit
View All Articles ››