Amazon gets set to adopt NFC technology

Within a couple of years some 340 million mobile users around the globe will conduct some sort of mobile payment, according to Gartner's latest forecast. It's no wonder, then, that many companies are keen to put mobile payment systems into place, no-one more so than Internet giant, Amazon.

by Helen Leggatt

Recent reports reveal Amazon may be getting in on the mobile payments scene.

Un-named sources told Bloomberg the Internet retailing giant may be about to introduce a new service, based on near-field-communication technology (NFC) that will allow payments for goods in stores to be made via mobile phone.

Users of NFC services will be able to hold their handset near an NFC-equipped checkout and use an app to make payment for goods and services, or even carry out other tasks such as coupon redemptions or use loyalty points.

According to ABI Research, the number of phones with integrated NFC capabilities will double next year from 2011's 34 million shipped devices.

Amazon may also be considering a marketing service that would allow customers who can't find the right size or color products instore to use NFC-enabled devices to find the correct item on Amazon.com.

Just this week it was announced that NFC will be integrated into future Windows phone devices, with this likely to come in an update to the Windows 7 OS. Samsung Nexus S devices have had NFC capabilities since the end of last year. Apple is thought to be adding NFC to the iPhone 5, due out later this year.

Starbucks has led the way with mobile payments, having implemented it in 6,800 of its stores and around 1,000 Target-based locations earlier this year. The service has been a big hit with customers. Just over two months after implementation, Starbucks' CEO Howard Shultz revealed that three million customers had used the service.

Tags: mobile market, mobile payments, mobile phone, near-field-communication, NFC technology