NFC Smartphone Payments Face Potential Hurdles, Claims PayPal

A report by internet bank PayPalm, has found that the mobile wallet payment system developed by Vodafone, Google, Orange, Mastercard and Visa could expire before it is officially release.

Google along with many others are trying their efforts in promoting Near Field Communication technology - a system that replaces credit cards with smartphones to be tapped on a specific reader in order to make a payment.

The new NFC technology displayed this week at the Mobile World Congress in Barcelona is proving to be a true pioneer in the latest mobile payment technology.

In order to bring this technology to life, an alliance amongst mobile phone operators, banks, software developers as well as handset makers must first be established - which is easier said than done. Not only is their involvement required, but various shops and restaurants will need to invest in the appropriate equipment whilst customers must also have NFC enabled devices.

Head of mobile at PayPal, David Marcus, explained: "For NFC to succeed you need consumers to have the handsets, and merchants to install the terminals. It will take time for NFC to get mass adoption. By the time NFC catches up, we'll be in a world that will move away from the point-of-sales terminal," reported The Guardian.

Both PayPal and Apple are currently engaged in the development of an alternative that provide simple installation, meaning NFC may have some stiff competition on their hands.