Contactless payments by mobile phone could become mainstream in 2011

Something odd happened in the past couple of years. Everyone stopped asking whether it’s the year of the mobile. That’s probably because mobile has now become mainstream and with the mainstream comes the tsunami of innovation, not least in the financial services sector.

This week Nokia announced that they were making a huge move in the mobile payments market to move closer to contactless payments with the launch of their C7 phone in 2011. The rumours are that the Near Field Communications (NFC) technology required are also appearing in patents being filed by Apple for the new generation iPhone and in addition Eric Schmidt, Google’s CEO has also announced that they working with NFC technology for the android platform. So does this mean an era of contactless payments may be just around the corner?

Alex Kwiatkowski - Principal Analyst in Ovum's Financial Services Technology Team voiced some doubts stating that 'While the ecosystem is evolving, old concerns (10+ years) over a viable business model for sustainable/decent revenue remain' he went on to say 'Nokia pulled its 6216 device (using NFC & SWP) in Feb '10, due to current state of NFC ecosystem and poor consumer experience.' So Nokia definitely have some credibility issues when it comes to the technology and with Symbian still performing so poorly, the issue is compounded.

However as always with Google and Apple in the frame the play becomes more serious from a software perspective and with Nokia’s ability to flood the market with low cost hardware, the battle could be fought on two fronts.

Ecosystem and revenue concerns there may be, but with 3 such massive players making a play and a whole host of bit part players around the edges, you get the impression that there must be something in it. Personally, the sooner I can get rid of my wallet the better so I’m hoping we’re not far away.

Facebook may finally have a true rival

On Thursday Google made their first major update to Google news since 2002. The aim is to make the whole news section more relevant, personal and of course, as is de rigeur these days, more real-time. We’re wondering though whether it may be a precursor to something much bigger and could perhaps be part of the functionality development within Google Me.

‘What’s Google Me then?’ you may ask. Well it’s just a rumour, however, it’s coming from some very credible sources. By all accounts Google Me is a social service due to rival the might of the now omnipresent Facebook and frankly a competitor probably couldn’t come soon enough. It’s been argued that Facebook’s sheer scale is strangling innovation as it harvests all the best ideas and releases poor imitations of the original idea.

However the real win here is the focus on the privacy issue within Facebook. This week Mark Zuckerberg has been in the UK facing questions about the privacy issues and he and the company have assured users they are tightening up on security. However, Google have an excellent reputation for data security (despite the slight Streetview blip) and given that fact and their similar scale they could provide a real alternative to Facebook. Let’s just hope Google Me doesn’t end up being the next Buzz or Wave.

Watch the Wave

Right so first up my invite from Graeme hasn't arrived yet, but then according to @Twephanie it's going to take some time to come through which means Graeme will have to keep on waving at himself for a little while.

However I'm going to start moaning about it already. One of the key features that the development team are pushing is the ability for correspondents to see each others typing in real time.

Cool you may think, but why. How many times have you written and rewritten an email response, or written in haste and thought again or written an email and then changed your mind. Many times I'd suspect and in most of those cases you probably wouldn't have wanted the intended recipient to have seen what you were writing so far not so good.

However my key issue with this functionality and something I posted about on Amelia's blog is it effectively replicates and promotes one of the worst aspects of human communication i.e. that of not listening to what i being said and therefore anticipating what is being said and responding. Online social communications are all about listening, they're about understanding and responding accordingly. Although our browsing behaviour has become increasingly snack like we don't want it to progress to poorly communicative anticipatory otherwise what's the point. Realtime communication while it sounds like the future and may well be, may not be a great leap forward.