Factors Influencing the Slow Rate of Penetration of NFC Mobile Payment in Western Europe

• The NFC technology implemented on the base of contemporary mobile handsets can provide considerable benefits to end-users. However, despite high level of diffusion of mobile phones in Western Europe, the level of penetration of the NFC based mobile payment is low. A considerable number of trials have been initiated, however, large scale deployment of commercial NFC services cannot be seen. This paper identifies and analyzes different factors that influence the slow rate of penetration of NFC based mobile payment in Western Europe.This paper presents a qualitative study based on experience of six NFC pilots implemented in Finland, France, Italy, the Netherlands, Norway, and the UK. The research findings confirm that a number of demand and supply barriers negatively affect the rate of the penetration of the NFC payment. The network externalities and the lack of consumer awareness about NFC services were identified as the most important demand side barriers. The most significant supply side barriers are the lack of uniform technological standards, the lack of NFC enabled mobile phones, and the coopetition issue. In addition, the interrelation between mentioned obstacles was identified. This fact means that a delay in the NFC payment’s diffusion is affected not by a single factor, but rather by a set of interrelated factors. The sources of these obstacles are related to the consumer acceptance, the specifics of business environment, and the technology.

Ämnesord

TEKNIK OCH TEKNOLOGIER  -- Elektroteknik och elektronik -- Telekommunikation (hsv//swe)

ENGINEERING AND TECHNOLOGY  -- Electrical Engineering, Electronic Engineering, Information Engineering -- Telecommunications (hsv//eng)

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Nyckelord

Near Field Communication

NFC

Mobile Payment

Supply-side Barriers

Demand-side Barriers

Mobile Payment Adoption

SRA - ICT

SRA - Informations- och kommunikationsteknik

Publikations- och innehållstyp

ref (ämneskategori)

kon (ämneskategori)