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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, the idea of using an electric fan to blow away an empty box has become more practical than relying on NFC—highlighting just how far it still has to go.
In the public transport sector, 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. The infrastructure required to fully implement NFC is complex, and many stakeholders are hesitant to invest without clear returns.
The main challenge in developing NFC lies in the lack of unified interests across the industry chain. Each party—from chip manufacturers to mobile phone producers, payment platforms, and transportation authorities—has different priorities and goals. This makes integration extremely difficult. The NFC ecosystem involves multiple players, including NFC chip makers, security chip companies, mobile phone brands, TSM platforms, card issuers, system integrators, and regulators. For users, this means their phone can act as a variety of cards without even realizing it—but for the industry, it requires seamless cooperation and careful balancing of interests to create new business models.
NFC is a hardware-level feature that must be built into smartphones from the start. Phone manufacturers must decide whether to include an NFC module during the design phase, considering factors like cost and antenna performance. Adding NFC increases production costs, so it’s often omitted from low- and mid-range devices. Additionally, the presence of an NFC chip can interfere with the phone's signal, especially in metal-bodied models. As a result, manufacturers face tough trade-offs when designing their products.
For phone brands like Samsung and Xiaomi, supporting NFC is a strategic move to promote their own mobile payment systems. However, most other brands offer limited or no NFC support, suggesting that it’s often just a minor feature rather than a core focus. Meanwhile, public transport companies worldwide vary widely in their readiness for NFC. In China, for example, each city operates its own system, meaning that a single phone model might need to be customized for different regions. This adds complexity and limits scalability.
QR codes, on the other hand, have become a universal method for payments and connectivity because they work across all mobile devices without requiring special hardware. They align better with the goals of integrators who want a simple, scalable solution. Interestingly, on December 26th, WeChat announced new features, including open NFC capabilities through its applet. This suggests that while NFC may not be mainstream yet, it's still being explored.
So, who will win between NFC and QR codes? It's unclear. But for the average user, having both technologies could offer the best of both worlds. After all, convenience and compatibility are what really matter in the end.