NFC Gaining Influence on Consumer Behavior

Fueled by growth in contactless payments, brands are using NFC technology to foster new and innovative experiences.

Since being introduced in the mid-2000s, NFC (near-field communication) has asserted itself as the dominant short-range communication technology. Today, there are more than 2 billion NFC-enabled devices in use, and that number is set to skyrocket in the coming years. 

“Adoption of contactless technology is surging as consumers look for convenient, secure, and safer ways to pay, unlock, access transportation and connect with the world around them,” said Mike McCamon executive director of the NFC Forum. “Our members and supporters are making a ‘contactless lifestyle’ a reality for more and more consumers every day.” 

Contactless Payments, but Much More 

Consumer adoption of NFC technology has largely been focused on contactless payments, which saw a dramatic jump during the pandemic, and though mobile payments tend to be the most recognized use of NFC, other use cases are driving new concepts, ideas and interactions.

“The pandemic has created a surge in NFC usage," Phil Sealy, research director at ABI Research, said. "NFC use in payment scenarios pre-COVID-19 was high but, post-COVID-19, we predict that NFC will be extended to other use cases as consumers are showing an increasing reliance on the technology.” 

In fact, NFC Forum found that 96% of NFC users have used the technology for something other than contactless mobile payments. Among notable uses other than payment were tap-to-connect (tried by 49% in USA; 53% in Asia-Pacific; 56% in Europe) and consumer products (tried by 33% in USA; 36% in Asia-Pacific; 34% in Europe). 

NFC Gaining in Daily Use

More than four in 10 of those surveyed admitted to using contactless technology on a daily or near-daily basis. A vast majority of users (88%) claim consistently positive experiences with contactless NFC, and 70% say they are confident with the security NFC provides to protect their payment data. 

At WaveOn, we’ve seen our own first-hand data illustrating this trend toward increase in NFC scans and interactions with consumer products.

To learn how to use NFC technology to make your products a direct engagement channel with customers and prospects, talk to WaveOn today about setting up a demo or developing a prototype.