Here at RapidNFC, we are always following the latest trends in the NFC industry; an industry that is constantly innovating and developing new features. In this article we are going to look at what we believe will be some of the key trends in the future.
As new smartphones are rolled out, we've typically seen the latest models arrive with better displays, faster processors and longer battery life, with each generation improving on the last. However, recently, smartphone development has started to plateau with new phones not necessarily being a huge improvement on their predecessors. As a recent example, look at the similarities between the HTC One M8 and M9.
This is also the case with smartphone features as more phones are coming out with a richer feature set. As such, we are seeing not just flagship phones, but also entry-level models, like the HTC Desire 510, with NFC. This should contribute to a large growth of NFC devices as more and more smartphones ship with this feature, an outcome also predicted by IHS Technology who estimated that over 1.2 billion NFC phones will be shipped in 2018.
NFC payments have greatly increased with the introduction of Apple Pay, which has helped to boost the number of retailers that accept this kind of payment. This has not only meant that Apple Pay has become risen in popularity, but also that similar services, like Google Wallet, have seen growth as described by Ars Technica.
Furthermore, with smart wearables like the Apple Watch and Jawbone's UP4 including NFC payment functionality, it seems that we will see NFC payments becoming even more popular as smart wearables become ubiquitous. One of the key advantages of wearables for NFC payments is that they can use biometric data, like heartbeat etc., to provide authentication for payments, resulting in a secure and seamless experience.
We are seeing more and more smart devices being introduced to replace typically 'dumb' appliances in houses like the Nest Protect, a smart fire alarm, and the August smart lock. These appliances are designed to connect to networks; allowing functions like changing the temperature or unlocking your door, which currently are done manually, to be carried out through an application.
Interacting with these devices is typically carried out by a smartphone and getting the two devices to communicate can require a laborious Bluetooth or WiFi setup. Using NFC as a quick communication link would be a great way of speeding this up and is something that can already be seen in Bluetooth speakers like the Libratone Zipp. Companies like NXP and EnOncean are already teaming up to showcase an NFC enabled lighting system and further developments will surely follow.
The iPhone 6 was the first iPhone to come with an NFC element, unfortunately Apple has locked it down to Apple Pay for now so it can't interact with NFC tags.
Apple has a history of being cautious with new features in their phones; when the first iPhone was released, there were no third party applications! It was only when Apple became aware of the great potential of mobile apps that they were allowed and the App Store was released. Today, there are over 1 million applications on the Store.
In a similar fashion, now that the iPhone has NFC, we believe it's only a matter of time until Apple opens it up to interact with tags. With the marketing and asset tracking platforms available to NFC, it would be odd not to. We have described some of the effects this could have in our earlier blog What Happens When iPhone NFC Opens Up.
These points should emphasise the speed at which the NFC market is expanding, with new features and developments in turn driving further innovation. While we can’t be sure what the market will look like in the coming months and years, it will only continue to become bigger and better.
There's been a lot of talk about the concept of the Internet of Things over the last few years. The essential concept being that everyday objects, such as fridges, central heating systems, coffee machines and so on are connected to the internet and become part of an interconnected web.
One of our clients, Skute - Skute.me - has taken this concept in another fascinating direction by using NFC to connect a physical 'tag' called a Skute Pod to online content such as music or videos.
Skute's real strength comes from it's ability to create a connection of physical Pods into a social network. A great example is within an event or location such as a skate park. Users can use the Skute pods containing NFC tags to allow others to connect with them in a physical way - perhaps by allowing them access to special videos or content created in that location.
It's a concept that is finding a lot of interest with advertisers and brands looking to create specialist content for events. For example, allowing users that have tapped a physical tag in a certain location to become part of a special social network and access content designed for that group. The exclusivity and geographic proximity - combined with the action of connecting with the NFC enabled Skute Pod - provides a really special user experience.
What we at RapidNFC find interesting about the project is this connection between the concept of the Internet of Things and the 'thing' itself being a changeable and movable object. Being able to attach a virtual link to any physical item or geopgraphic point via the NFC Pod.
As we always say - RapidNFC are proud to be involved in so many groudbreaking projects. Skute is certainly one of those.
Find out more information at Skute.me
Not surprisingly, RapidNFC believe that NFC, compared to similar technologies such as QR codes and Bluetooth Beacons, provides the best overall user experience. Now, a consumer survey carried out by Strategy Analytics and recently reported in NFCWorld, has concluded that US consumers preferred NFC technology to QR codes and iBeacons by a significant amount in every aspect.
The study determined that once consumers had actually experienced using NFC in a retail environment, 75% of those surveyed were 'very satisfied their experience [using NFC]'.
The main points of the survey were as follows :
- 75% of US consumers surveyed were 'very satisfied with their experience [using NFC]', compared to a 53% satisfaction rate QR codes.
- 50% preferred to 'retrieve product information' using NFC, compared to 23% for QR codes and just 10% for Bluetooth beacons.
- 56% preferred to 'access information on large products' using NFC, compared with 23% for QR codes and just 7% for Bluetooth beacons.
- 61% preferred to “order parts and accessories for products” using NFC, compared with 20% for QR codes.
- 43% preferred to “access in-store Wi-Fi and view deals and rewards” using NFC, compared to 25% for QR codes and just 14% for Bluetooth beacons.
So what is it about NFC that consumers preferred so much ?
One of the many benefits of NFC is the level of control the consumer has. You cannot accidently interact with an NFC tag or reader. It is a very deliberate act of holding your phone in close proximity. Bluetooth Beacons tend to push data onto the consumer which can often be unwanted and irritating - it's been compared to receiving spam email.
Consumers would naturally be less comfortable with something they do not have much control over and understandably, people are a lot more comfortable with a technology they have to deliberately interact with to access the data.
QR codes tend to have alignment issues when people attempt to scan them and if the data is large or somewhat complex it can often struggle to scan. This slightly awkward user experience doesn't compare favourably to the typically slick NFC user experience.
Ultimately, NFC simply feels like a more dynamic technology when compared to QR codes and the effortlessness of scanning a NFC tag makes the whole consumer experience a lot more straightforward and enjoyable. Consumers do not want a struggle to retrieve data, they want the transition to as smooth and instant as possible.
What is the benefit for companies using NFC?
Whilst the consumer may be in control of how they interact with NFC marketing campaigns and promotions, there are also benefits to companies who do not push data onto the consumer. When a tag is scanned the brand knows that the user has made a conscious effort to interact with their promotion, and that therefore the user is in some way interested in that promotion, brand or marketing message.
Over time, NFC marketing campaigns can become very powerful way to know how interactive consumers are with a particular marketing campaign, and, ultimately, what campaigns are more effective than others.
We've been looking this year at hardware solutions for our customers. RapidNFC don't sell hardware and have no plans to, but clearly no NFC solution can exist without some hardware/software solution.
The vast majority of our customers are using NFC with mobile phones - mostly on Android but some with Windows phones. Hopefully Apple will join the party later this year. Many Apps are cloud based but the hardware and development is managed using an off the shelf mobile handset. It's an extremely powerful and cost-effective solution combining NFC, WiFi, GPS, flexible operation system and so on.
However, we also work with customers using PC, Arduino and Raspberry Pi based systems building solutions from scratch. We are seeing some clever, flexible and interesting solutions starting to emerge.
RapidNFC is one of Europe's most experienced NFC companies and a leading global provider of NFC tags and products and as such, is uniquely placed as a company people turn to for advice on how best to implement their NFC application or use case.
We thought we'd take a look here at one company that illustrates the type of prototype and development that is making NFC use easier. One of our clients, GainLoyalty, recently showed us a new prototype they have produced, an NFC Remote Antenna. Their full blog post, along with accompanying video, can be found on their Gainloyalty website.
The prototype consists of two coils coupled together that can be used to transmit signals between an NFC reader/writer and an NFC tag. As it is a passive instrument no batteries are required and it can be easily setup by placing the NFC reader (typically a NFC phone or tablet) onto the larger coil. An NFC tag can then be touched to the smaller coil and it will be read by the reader.
As it is lightweight setup, it could be easily implemented into a variety of situations, and most kinds of NFC tablets or phone could be inserted into the device. Furthermore, a small increase in the read distance has been measured when using the remote antenna rather than a standalone tablet.
While still in prototype stage, it has already gained attention from a number of organisations looking to trial it out. We can see plenty of use cases at tradeshows, events or employee control; situations where it may not be ideal to swipe everyone's NFC tag with a device. Using this remote antenna, attendees could easily swipe their own card on the reader terminal, while the NFC device can be lifted from the antenna setup if any other functions, like the camera, need to be used.
As regular readers of this blog will know, RapidNFC get excited about all things NFC. We are privileged to get involved and provide products on a very broad range of projects. One area where the use of NFC Tags is growing rapidly is in the personalisation of products. The concept is simple - embed an NFC tag within your product to allow the user to interact with you and enhance the purchase and use experience.
One great example of this is a company in Marche, Italy called Rocco. P. who produce handmade shoes. Since their latest season they have been incorporating NFC tags into a number of their shoes. As a small company, they take great pride in the history of their company and the influence this has on their footwear. To reinforce this, they use the NFC tags as a 'shoe passport' that confirms the authenticity of their product.
By allowing their customers to interact with their product, not only does this assure their customers they are getting a genuine Rocco P. product, but it allows the company to provide more information about the production and heritage of the shoes. By scanning the shoe with their phone, customers can bring up www.roccop.it/reverso giving them information on the concept, development and construction of their shoe.
This interaction allows Rocco P. to project the uniqueness of their product, only made in Torre San Patrizio, to their end user. Ultimately, creating a closer bond between the customer, owner and uniqueness of the product they have purchased. Clearly, it also provides a shop window for the customer to view additional, new or other products available.
Rocco P. is a brilliant and exciting example of smaller businesses using NFC to promote their uniqueness and heritage. It demonstrates the ways in which NFC is starting to enter all manner of mainstream products to aid authentication, brand reinforcement and information provision.
And importantly, it isn't just about the large companies. NFC is providing a way for smaller businesses to continue to build their brands. RapidNFC are currently working on a large number of similar projects and we know that the future in this area is going to be very exciting.
RapidNFC are working with an increasing number of events companies and we have noticed the rapid increase in the use of NFC to make events more interactive and fun.
A great example of such a project was by a company called Aptriva a few months around Christmas time.
Christmas time can be a hectic time of the year, however one person is particularly busy. Santa can be seen just about everywhere: shopping centres, stores, parks, schools. Name a location, the likelihood is that Santa has paid a visit there at some point over the festive period.
All encounters with Santa around the Christmas period are special, however the children who visited Santa at his Grotto had a particularly exceptional and unique experience in which NFC played a significant part.
Using RapidNFC wristbands, Aptriva provided a complete system for their client that enabled each child to have a completely unique and personal experience with Santa. Upon booking, parents were able to provide a variety of talking points for Santa and their child. These topics ranged from the child's hobbies, their favourite pop stars and bands, their favourite football teams, their school, their teachers, their parents and incidents of the child being 'naughty' or 'nice' throughout the year.
Once the parents had provided the talking points online as part of the booking procedure, each child was given an NFC enabled wristband. These wristband were pre-encoded with all the information and talking points the parents had previously provided.
At the entrance to Santa's Grotto the children would 'wake up Santa' using 'magical props' (which happened to be discretely positioned NFC readers). As the readers scanned the wristbands, Santa's high-tech naughty or nice book would be updated with the parent's original talking points.
As the child entered the Grotto, Santa would have all the information he needed to have an in-depth conversation with the child about all their favourite talking points.
As I am sure you can imagine the children loved the whole experience and were utterly amazed that Santa had paid so much attention to them this year. The whole project was a resounding success, and the NFC based system designed by Aptrivia gave each child who attended the Grotto a very personal encounter with Santa and some unforgettable memories.
We have a feeling that, given how useful Santa must have found the additional information provided prior to meeting the children, similar events will be just as successful next year.
An article in NFC World recently caught our attention here at RapidNFC. It raises an interesting question: will NFC eventually replace conventional keys ? The article concerned lock maker Yale releasing an NFC lock for homes that can be opened with a tap of an NFC enabled card or smartphone.
Whilst this is relatively ground-breaking for private properties, hotels have been using NFC cards and even mobile phones to unlock doors for a while now. Hilton hotels are reportedly planning an initiative to allow guests to access their rooms via their smartphones in over 4,000 of their hotels. They also plan to let clients check-in via their smartphones using the same technology, allowing guests to go straight to their rooms upon arrival.
Certainly, the astonishing growth in NFC contactless payments has illustrated that people can adopt NFC technology very quickly where they see the benefits.
There is a case to say that NFC smartcards and NFC mobile phones will, ultimately, replace conventional keys. From a purely practical point of view this makes sense. It would be a lot more convenient to have one NFC card rather than multiple keys. All you would need do is simply tap the NFC lock to gain access to any property your card is programmed to enter.
A huge benefit of this, asides from convenience, is the cost. Once the lock is installed, there would be no need for cutting keys or changing the unit when you move, lose your keys, etc. A new PVC or PET NFC card for less than 1.00 GBP/USD, a quick re-program and away you go. Additionally, if you were to lose the card the data could simply be stored securely online and another card can be reissued. A lot less expensive and time consuming than cutting keys. Of course, it would probably be a good idea to keep a spare card available in case of an emergency but enabling and disabling the spare would take just moments.
Then there's the added benefit of being able to temporary let others access. No more getting keys cut and keeping track of who has what. Just issue access to another users 'card' with a time limit and you are all done.
Clearly, this does not need to stop with keys. Ultimately, why not have everything programmed onto one NFC smartcard ? This may be pushing the idea to an extreme, but it is not as outlandish as it initially seems.
We already have contactless payment, which can be used in a variety of stores and increasingly many international transport systems. If you can use contactless NFC cards for transport and retail payments, there is no reason why you could not use them for loyalty cards, gym/ organisation memberships and pretty much any other type of card you would keep in your wallet or purse. Once you add keys to this, and even the possibility to start vehicles, you would be able to condense the contents of your pockets down to a one NFC smartcard and/or your smartphone. It is exciting, it is convenient, it is cheap and it is certainly futuristic. So why does that feel somewhat unnerving ?
Readers may feel slightly anxious and uncomfortable about this and understandably so. It is, perhaps, easier to lose one card then it is to lose the entire contents of your pockets. It is a bad day when you lose either your keys or wallet, losing both simultaneously would be a disaster.
Perhaps not. If you lose your purse or wallet and keys, the chances are that you are going to spend a considerable amount of time and (especially if you lose your car keys) money getting everything cancelled, replaced and changed. With a single card, you may be able to cancel everything in one go. And then be up and running again in moments with a new card (or phone). A fraction of the cost, a fraction of the effort.
We are already seeing progress with 'tap and go' oyster cards, 'tap and pay' contactless cards and 'tap and enter' NFC keys. The momentum is building and it is surely only a matter of time now that our pockets and bags start to finally get lighter.
RapidNFC supply NFC Tags and work with a very large number of clients on projects throughout Europe who are using NFC technology in original and creative ways. It is always great to hear the details and stories behind these projects.
One such project that has recently caught our attention was Informació Barcelona Contactless creating multiple NFC access points throughout the city of Barcelona on behalf of the local government. The project has used technological innovation to create the foundations of transforming Barcelona into a 'smart' and more interconnected city.
So what is the purpose of this project? To use Barcelona Contactless' own words, it's to create a '…window of the virtual Barcelona through the physical one'. And they have done just that. They have created multiple NFC 'access points' throughout the city, which offer people a variety of information regarding local services, events and transportation.
Depending on the item scanned you could '…visualise information on the equipment/service itself, [look up] information from other facilities/services nearby, and related agenda, download related mobile applications, and look up cross-check events in the city'. Essentially Barcelona Contactless has created an interconnected App-based system in which people are able to physically interact with the city's infrastructure.
Projects such as this show how NFC is becoming more and more mainstream, to such an extent that it is now becoming part of the actual infrastructure of major European cities. It also shows that, with a little bit of innovation, NFC can be used in new and creative ways to directly benefit local communities and city populations.
For further information and details regarding the Barcelona Contactless project check out their website: http://contactless.barcelona.cat/en.
Last year the Apple iPhone 6 joined the majority of smartphones by containing an NFC controller. However, at the moment, this new iPhone is locked down only to the Apple Pay mobile payment system. This means that iPhone 6 users are unable to take advantage of the massive potential of NFC through apps, tags and communication.
Despite this, in the 72 hours following it's launch, a million credit cards had been registered with Apple Pay - an indication of the popularity from Apple's user base. Since launch, we've been asked many times if an when Apple will open up access to the NFC controller and what difference it would make to the market. In answer to the first part - we simply don't know. Most commentators, including RapidNFC, believe that they will (and that it will be able to scan tags) but when is a different point.
As for what difference it would make, let's consider what will happen if the iPhone's NFC controller is opened up and allowed to function with NFC tags and applications.
Marketing is arguably one of the most anticipated uses for the iPhone's NFC function. Clearly, advertisers are currently holding back because without the iPhone, a percentage of all NFC marketing spend is going to be lost. A complete round-up of all phones changes that.
Additionally, while there are of course more Android users than iPhone users, iPhone owners are seen as spending more money than their Android counterparts, making them a valuable demographic.
As such, NFC marketing, such as smart posters or other promotional material, will become more attractive to retailers and advertising agencies once the iPhone can interact with NFC tags. This will affect Android and Windows Phone users as well as iPhone users due to Apple's influence. An example of this knock-on effect can be seen in America, where the release of Apple Pay helped grow the general mobile payments market. This launch saw boosts in the use of Android mobile wallet apps such as Google Wallet and Softcard which grew as more retailers struck deals with the companies.
Applications would benefit from NFC as current apps could be updated and new Apps could be developed and released to use this new functionality. NFC could be used in a number of ways in new applications. Apps could be released that write or read the tags or encode the tags with weblinks or trigger system setting changes. Another potential application could allow communication between devices, like Android Beam, that can send information easily from one device to another. Developing this theme of communication, applications could be used to connect and pass information from phones to other smart devices around the home – developing the Internet of Things.
NFC functionality could be incorporated into existing apps from retailers and other companies. This is one of the most interesting uses as it will allow stores to easily and intuitively interact with their customers. For example, NFC tags could be linked to further information on products or retailer's apps could allow extra functionality such as saving items for later. This concept is already being pioneered by Topshop using barcodes to save items for review, however using NFC tags would allow for a better experience, increasing ease of use for the users and so greater rewards for the retailer. Based on the range of apps that can tap into this NFC functionality, it is likely that, when the iPhone's NFC is unlocked, the next 'killer app' will use this feature.
The rapidly increasing use of NFC within Asset Management and similar user and object tracking and management systems has been once of the success stories of NFC. In fact, the significant majority of RapidNFC's business is working with companies rolling out asset management projects.
While we expect to see some 'glow' from iPhone NFC, it's unlikely to change the current momentum in this area as the hardware (the phones) are usually supplied or can be recommended. The cost and relative software and ecosystem restrictions of the Apple iPhone aren't as appealing to many developers in this area and we would expect to see Android continue to dominate in this area. (With possibly Windows Phone creeping in as many corporate clients start to move towards a Windows tech ecosystem).
When Apple does allow the iPhone to work with NFC, we expect there to be a large shift in both companies and consumers perception of NFC, as more marketing and applications become available that use this technology. Due to the popularity and the influence Apple has, we anticipate that NFC awareness will rapidly grow among both everyday consumers, across the platforms, and professionals in marketing and advertising.
Whatever happens, there are certain areas of the NFC market that will change very quickly.
RapidNFC have been fortunate to have been involved with many of Europe's largest NFC marketing campaigns over the last year. Projects have including outdoor advertising such as shop windows and bus stops, promotional marketing such as drinks mats, badges or giveaways, in-store marketing, magazine advertising, mailouts, flyers and much more.
One thing that connects all of these - as with any marketing campaign - is the desire to maximise response rates. Clearly, an NFC marketing campaign is always going to be about getting the maximum number of people to scan the tags.
So what have we learned ? Let's summarise in three main points.
Use the best performing tag you can. RapidNFC rate all our tags with our unique ScanStrength rating. The higher the rating the greater, in general, the scanning distance. And it makes a difference. We were involved in two campaigns during 2014 where the users interaction with the tags were very carefully recorded. On average, a typical mobile phone user will spend less than five seconds trying to scan a tag and then give up. Five seconds.
Additionally, in many cases, users didn't try to locate the hotspot on the phone by moving it around - they simply placed the phone and waited. Then gave up. The message here is clear - if you want to maximise response, make sure you use tags with the best possible ScanStrength and then get them as close as possible to the users phone.
This is a very common discussion with our team. Our recommendation is simple : Link to a mobile optimised website landing page and from there engage the user.
We've seen attempts to link to Facebook, download Apps and all sorts. All of these can have varying results across different mobiles. We have seen links through to webpages designed for desktops which don't render and take an age to load. Users will not wait for a download and they turn off very quickly if redirected to an App download (unless the campaign is specifically stating 'download our App here'!).
The best results were always that a fast response from the tag (see above) and a fast presentation of the campaign. Once the user has that initial response they will be substantially more willing to get involved from there.
We have saved the most important to last. This is the one where we have had the most discussion and the effect on perfecting that call to action on campaign performance is astonishing.
Let's be clear - not enough people know what NFC is. Many phone users have little idea that it's even on their phone or how to use it. Many iPhone users think they can scan NFC tags. So we need to help and this is crucial in the success of a campaign.
Two basic changes can make all the difference. This is what you need to do.
First, make sure you use the letters NFC. We've seen numerous marketing campaigns where advertisers have used an NFC logo (ours or the NFC Forum) without the letters 'NFC', perhaps with 'tap here' or something similarly vague. It's useless. There's a tiny amount of recognition for these logos.
Second, guide the user. A short phrase such as 'place your NFC enabled phone here' will work wonders. Better still, tell them why - 'place your NFC enabled phone here to get your voucher'. Using a picture of a mobile phone has shown to help but from our involvement either a picture of a phone or the word phone is just as good.
RapidNFC saw a gradual pickup in NFC marketing during 2014 but we feel that 2015 is the year where we will really start to see some high profile campaigns. This isn't just about getting users to interact with a campaign but getting users to really connect with products, brands and ideas. NFC can provide a very quick and easy link between a physical object like a poster, magazine or store shelf and online information, social networks and so much more.
But to get the maximum performance, it needs to be considered with more care than putting a simple website address on the bottom of a poster.
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