By the Mind Commerce Staff
There was an explosion in mobile payment service launches, joint ventures, and partnerships in the 2011-2012 period, along with announcements of new initiatives that would run into 2013 and beyond. Merchants are starting to appreciate the benefits that mobile payments can bring, with major chains including Starbucks and McDonald’s launching services on a national basis.
The role of Near Field Communication (NFC) in mobile payments continues to divide the industry. Its champions argue that it will propel mobile payments into the mainstream, whereas its detractors point out that it is a technology not a service, and is just one of a number of enabling technologies capable of supporting mobile payments.
Despite having been around for more than a decade, only now is NFC beginning to make a serious assault on the marketing industry. Much of the focus on NFC over the last couple of years has been around contactless payment. There has been little if any discussion about capturing data from NFC transactions for analytics.
NFC technology works by sending data via radio waves between two devices that each has an NFC chip when the two come into close proximity, typically within a foot. It works by the same methodology as RFID (Radio Frequency Identification) tags. In one scenario, a customer picks up an RFID hanger holding a shirt and examines the garment while viewing relevant product knowledge displayed on a nearby panel. The customer enters a fitting space and tries on the garment.
An RFID reader records this action. The customer then decides to shop for the blouse, leaves the fitting area (an action duly noted by the RFID reader), and completes the acquisition via NFC on her smartphone. As she completes her purchase, she takes advantage of the store’s promotion to post a photo and outline of the purchase on her Facebook wall.
This single transaction creates five different data records:
- Picking up the hanger
- Entering the fitting room
- Leaving the fitting room
- Purchasing the blouse
- Making the Facebook post
This represents a huge and fast growing opportunity for Big Data as a Service (BDaaS) providers to take advantage of data collection, analytics and generation of business intelligence information for retailers. However, this is just one example of data collection. As indicated in the above illustration, there are several places where the so-called “Big Data” (unstructured data) can be captured.
The Mind Commerce report, Capturing Big Data in Social and Detection Systems: Market Opportunities and Challenges 2013 – 2019, evaluates various detection technologies/systems as well as integration from social media/networks for Big Data capture. The report indicates that this will be of the largest and certainly fastest growing sources of unstructured data, which here-to-day is going largely unutilized.
For more information, Skillsoft® Books24x7® AnalystPerspectives™ customers can view a complimentary copy of the Mind Commerce report, Capturing Big Data in Social and Detection Systems: Market Opportunities and Challenges 2013 – 2019.