'Contactless Cards,' Like London's Transit Card, Will Fuel Mobile Payments Adoption Globally

RTR2LH1XReutersCommuters on London’s Tube tap or wave a card to pay their fares

NFC, a technology already used in apps like Google Wallet, allows people to pay with their phones by tapping a payment register at a store. But this is an unfamiliar shopping behaviour, and even if it has advantages (like helping shoppers rack up loyalty points for repeat purchases), it is unlikely to see mass adoption without a catalyst.

But that catalyst cas arrived. Contactless cards, which interact with readers that are NFC compatible, will act as a bridge for getting consumers to pay with their phones, especially as more public transit systems adopt them instead of traditional tickets and fare cards.

Millions of commuters in Tokyo and London (where it’s known as an oyster card) already use contactless cards to pay their fares, instead of traditional tickets or fare cards. NFC-powered contactless credit and debit cards are also gaining popularity in Europe for low-value transactions.

In a new report from BI Intelligence, we take a look at why NFC is back. Apple may include it in the iPhone 6, expected to be released Sept. 9. Recent developments on the consumer, merchant, and developer side are reinvigorating NFC and making it a strong contender to become a leading technology for in-store mobile payments.

Access the Full Report And Data By Signing Up For A Free Trial Today >>

Here are more of the key takeaways:

In full, the report:

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.