Mobile phones equipped with field communication (NFC) technology will start replacing cash by 2011, according to a recent study.
The report 'NFC: The Road to Commercial Deployment' claims that the technology will replace ‘everything from credit cards and loyalty cards to bus and train tickets, library cards, door keys and even cash.’
By using NFC-equipped phones, users can hold their handsets to a poster or product label containing an RFID chip to sign up for a loyalty programme or access the latest travel information, for example.
"No more rummaging around for the right change, card, keys or paperwork and no more texting your location to your friends, with NFC everything can be handled by your mobile device," said Sarah Clark, author of the report.
She added: “NFC is a highly secure technology; consumers will be able to instantly lock all the mobile wallet services on their phone if it is lost or stolen and then have them automatically transferred onto a new phone as soon as it arrives. They will also be able to use their phone to make payments even when the battery is flat."
According to the study, this year will be crucial in determining who will rule the market.
"Decisions made in 2010 will be critical to determining which mobile network operators, banks, industry suppliers and service providers will become the leaders in the field," said Clark.
"Ultimately, only two or three companies in each country will succeed in building a major new business providing NFC services to businesses and consumers. The winners could be banks or mobile operators, or even a new entrant to the market," she said.
