• Type: Case study
  • Date: 6/17/2011

Case study: Preparing for near field communication (NFC) 

Preparing for near field communication (NFC)
How are leading banks approaching the development and deployment of mobile services? Here are a few case studies that highlight innovative banks around the world.
With a mass-market mobile proximity payment system (such as NFC) still some ways off, many banks are already developing and launching a variety of ‘remote payment’ solutions such as cell-phone ‘top-ups’, remote bill payments and remittances.

Benefits of remote payment

In the case of one regional Asian bank, remote payment solutions offered a number of compelling benefits. For one, the initiative reinforced its reputation as an innovative retail bank that delivered customer-focused services. It also built awareness within their ‘early adopter’ customer base and helped them become accustomed to using their mobile devices for financial transactions.

But more importantly, the bank also tapped into new sources of revenue and built a strong market presence as the first to market with many mobile payment services. For example, the bank’s ‘top-up’ service delivers not just payment revenues, but also a percentage of the total sale. The bank has also enabled the purchase of consumer items through their web portal, which has driven adoption and increased their payment revenues.

Lessons from mobile adoption

Of course, the bank expects some form of proximity payment system to formalize soon, and so is working with merchants to conduct pilot programs with contactless cards and NFC companion devices. Again, this has provided some valuable lessons to the bank in terms of customer and merchant adoption.

Executives at the bank are confident that they are gaining competitive advantage through their mobile payments solutions. And while they admit that quantifiable metrics and clear revenue streams are not always available, they seem certain that the qualitative benefits and positive response they are receiving from their customers is already paying dividends on their investment.


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The era of mobile banking and payments is dawning. Find out how mobile will change the way banks and their customers interact.