Near Field Communications Handsets and Tags, NFC Pilots and Projects

Analyst casts doubt on contactless stickers

Thursday, May 21, 2009

Forget contactless stickers. Just get on with NFC, a Boston, Mass. researcher argues. Nick Holland, Aite Group, tells Digital Transactions that contactless stickers, the kind that can be affixed to cell phones or PDAs and are meant to serve as an interim step before NFC takes hold, are “fundamentally flawed.”

He believes the stickers, which he calls “semi-NFC initiatives,” could actually turn people away from NFC when it becomes commercially available because of their limited functionality and because the stickers could be seen as defacing the devices.

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CPI Card Group and INSIDE Contactless have introduced a next-generation tag that enables mobile devices to make MasterCard PayPass and Discover Zip contactless payments.

The stickers, which are manufactured by CPI and based on INSIDE’s MicroPass 4003 contactless payment processor, contain all the functionality of traditional MasterCard PayPass and Discover Zip credit, debit or prepaid debit cards.

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Oberthur Technologies has reported an increase in demand for its FlyBuy contactless stickers with banks and issuers throughout the United States, including Citi, as well as internationally in Switzerland, Poland, England and Korea.

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Multicard, a business unit of Identive Group, announced that it has been selected by Rabobank to provide personalization and fulfillment services for the Dutch bank’s latest application of its MiniTix cashless e-payment solution.

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Reportlinker.com has released a market research report on the use of contactless payment stickers in place of built-in NFC phones to make mobile payments.

The report,”Making Contactless Payments Sticky with Stickers,” identifies the key market drivers for contactless stickers and the issues that must be overcome to make them a real, viable solution in the hands of consumers.

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Citibank has begun offering customers contactless stickers that can turn mobile phones into payment devices, says finextra.com.

The stickers link directly to the user’s Citi credit card account to perform purchases of up to $50 at MasterCard PayPass points of sale.

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DAILY RFID, a Chinese RFID/EPC developer, has rolled out RFID Stickers designed for harsher environments. Operating in either 125KHz or 13.56MHz, the adhesive disc tag is resistant to immersion in salt water and is dust proof.

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