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Analysis of the root causes of NFC development difficulties
NFC has long been seen as a promising technology for the future, yet its real-world adoption has fallen short of expectations. From item identification to mobile payments, it has struggled to compete with the more "traditional" two-dimensional code technology. In some cases, even the idea of using an electric fan to blow away an empty box seems more practical than relying on NFC.
In the public transport sector and in the eyes of consumers, NFC-enabled bus cards have remained in a state of stagnation. Despite years of promotion by media and manufacturers, especially around 2018, this seemingly advanced solution still lacks widespread support from cities, bus operators, and phone makers.
**Why is NFC so difficult to develop?**
The main challenge lies in the lack of unified interest among the various stakeholders in the NFC ecosystem. The industry chain is complex and involves multiple players, including chip manufacturers, security chip producers, mobile phone companies, TSM platforms, card issuers, system integrators, payment organizations, and POS terminal manufacturers. This means that users can seamlessly turn their phones into different types of cards without realizing it. However, for this to work, all these parties must cooperate smoothly, balance interests, and create new business models.
NFC is deeply integrated at the hardware level, requiring mobile phone manufacturers to include the NFC module during the design phase. Factors like cost and antenna performance come into play. Adding NFC increases production costs, which is why many low- and mid-range phones skip it. Additionally, NFC modules can interfere with signal reception, especially in metal-bodied devices, forcing manufacturers to make design compromises.
For phone brands like Samsung and Xiaomi, supporting NFC for transportation cards is more about promoting their own mobile payment ecosystems. Other brands offer limited support, suggesting that NFC is often just a minor feature rather than a core innovation.
Public transport companies also face challenges. In China, there's no centralized authority managing all transit systems, meaning each city operates independently. For a phone manufacturer to integrate with a local system, they must negotiate individually with each city. This makes large-scale adoption slow and inefficient.
Meanwhile, QR codes have become the universal standard because they are compatible with all devices and align better with what integrators want. Interestingly, on December 26th, WeChat announced new features, including open NFC capabilities through its applets.
So, who will ultimately win between NFC and QR codes? It’s unclear. But for the average user, having both technologies could be the best of both worlds.