A Younger Generation Is Eager For Mobile Payments/NFC

I was reading this week on ReadWriteWeb that MasterCard recently did a survey and found that 63% of 18-34 year olds are ready for NFC payments. This number doesn’t shock me at all, it’s actually a bit low, I would have thought it would have been higher. But none the less ⅔ of young people are willing and ready to dump part of their wallet onto their phone. They are willing to pay for products and services with their phones.

What does that mean for small businesses? How does that affect a small business and the big question that I would imagine pops up in an entrepreneurs head is how much will this cost me?

Well right off the bat I think there will be a cool factor, where people will use their phones to pay for things just because they can. But after a while I believe it will become the norm. This may affect small business in a few ways. It might become easier to do transactions. Just tapping a phone on a NFC reader is much faster then finding a wallet pulling out a credit card and sliding it. Yes there are steps to getting the phone prepared but they are minimal. So I believe this will be a time saver and if you have people waiting in line they’ll be happy about a shorter wait.

As far as expenses go this will vary a great deal. I would imagine that some credit card companies will start to offer vendors a cheap or free way to upgrade to an NFC enabled point of sale (POS). I can see Visa or MasterCard giving heavy discounts to vendors who are ready to step up and make the change. Why you ask, well just for the mere fact that they don’t want a business to go and get the new POS unit from their competitor. So truth be told it may be a very small cost to upgrade and I can’t imagine the cost of the learning curve to be that great.

I personally hope to see POS machines equipped with NFC readers start to pop up on a much grander scale in the next 12 months. But truth be told that lies in the arms of the small business, you need to decide if you want this and if you’re willing to invest in it. Of course this will all depend on the price the credit card companies want to charge for it.