Old tech pretending to be new tech?

Recognizing the excitement around everything mobile, some companies are positioning their innovations as mobile NFC solutions to take advantage of the business interest.

In a recent Forbes article titled "Leave The Credit Card, Take The Cell Phone," we're introduced to mobile payment provider, Bling Nation. Armed with any mobile phone, we can start spending without our credit cards. Instead, we just take our Bling-tagged phones and tap our way to shopping nirvana.

Not so fast. What this article fails to mention is that Bling Nation doesn't actually integrate any NFC functionality into the mobile phone. It issues RFID stickers which you can adhere to your phone, or not. You could just as easily stick it to your keychain, or even your good old fashioned plastic credit card. SMS messages are sent to your number with each transaction, but are not necessary to the service.

The Bling Nation platform doesn't let you leave your credit card at home, rather it let's you stick it to your phone. The technology is no different from any of the current keyfob or card based solutions already available -- except for the smart marketing positioning.

But while this is not a mobile NFC innovation, it does bring a major innovation to the table. Bling Nation takes the bank ATM network out of the equation, and instead offers a wireless clearing house function. Their service is significantly cheaper for retailers to use because they can offer lower transaction charges and monthly fees. So the real innovation is on their mobile payment infrastructure.

That said, having a system like this in place, they could be well positioned once NFC mobile phones gain traction. Their affiliated banks could register your phone to enable true mobile NFC functionality. Access to loyalty programs available from Bling Nation registered merchants would be unchanged. 

It's our job to craft marketing programs around platforms like this that take advantage capabilities like geo location and mobile internet access to connect with consumers at the point of sales to support and influence their purchase decisions.

iPhone RFID proof of concept

The Touch Project has a great prototype application of the iPhone using NFC to trigger video playback when RFID-enabled objects are scanned. It recognizes the power of mobile media applications to augment a real world experience, and very intentionally leverages NFC to interweave the two.


Check it out:
http://www.nearfield.org/2009/04/iphone-rfid-nfc


For consumers to adopt NFC-based applications they are going to need to get more than they give. In and of itself, this application won't persuade many users to start using NFC, but this prototype demonstrates how NFC could operate as a trigger for a compelling experience.

Provided that there are RFID-enabled objects to scan, this app could provide reciprocal relationship where users find the cost and effort of buying the app worth the utility they gain, and sponsors paying to create the content get the engagement with end users they crave.
 
What other killer apps are out there brewing?

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Image from article by Timo.

NFC Marketing Strategies: What is the first killer app going to be?

Before we can seriously look at a vision state for NFC applications we need to get rapid consumer adoption in order to expand the terrestrial infrastructure and establish usage models.

The best way to do that is with a Killer App that can realistically be deployed in the near term. This will necessarily be driven user needs and behavior, not by technological capabilities

What is this Killer App?

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Here are a few thoughts worth discussing:

Marketing driven
- Driven by user needs and behavior, not by technological capabilities
- The primary value proposition is an already established user need, not necessarily related to NFC
- Simple and intuitive usage (both for users and the operator)

Governed by reciprocal relationships
- Low Set-up costs for end user
- The benefit has to be significantly greater than the effort

Technology infrastructure
- Start with a closed loop solution to enable rollout
- Piggyback on existing installation if open loop
- Application distribution via established channels

Revenue Model
The benefits of consequence for Brands sponsoring the app would be increased customer loyalty, deeper engagement, and positive perception of their brand. In return, the Brand would have to underwrite Solution Providers to develop and implement technology.

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The vision state for NFC will still be seamless device-to-device interconnectivity, but first there needs to be compelling consumer applications to establish the technology as a standard platform.


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Images under creative commons license. Apps icons by Andrew.