Pay-By-Phone to Arrive in 2012

An article in Reuters claims that NFC (Near Field Communication) – the technology that enables people to make small payments by flashing their handsets over sensors, is likely to reach the American masses by 2012, when one phone out of every five sold will feature the wireless communication technology.

While the technology does already exists, an extra chip required for data security has kept the cost of production too high to completely roll out the service. However, research has indicated that when a 20 percent level of penetration is reached, the technology will then begin to ‘feed itself,’ becoming a viable business opportunity.

Abi Research is already forecasting that 6.5 million NFC phones will be sold in 2008, ten times as many sold in 2007.

Reuters: Phone Wallets Still Years Away