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19
jan
2018
Nicolas DIACONO
Technological Trends Senior Analyst
2 minutes

Apple Core NFC

Apple announced last june the opening of its NFC Chip (Near Field Communication) to developers. The Giant of Cupertino came to the Retail Big Show to promote it at a very expected conference.

Fact

With iOS11 (and an iPhone 7 or more recent) Apple opens the access to its NFC chip, which was currently only limited to Apple Pay functionalities. NFC allows communication through short distance radio waves.

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The solution Core NFC  will give the opportunity to developpers to create new apps for iPhone with NFC reading functionalities. They will be able to read the content of NFC chip type 1 to 5 which exchange data using the NFC Data Exchange Format (NDEF). This new was particularly expected by the finance industry, but it seems that it will not allow the use of other contactless payment solution than Apple Pay.

Thanks to this opening, the owners of compatible iPhone under iOS11 will get access to contect once the NFC is activated on their device. By using the app of a retailer, the client will be able to know the origine of a product simply by tapping the price tag which will be equipped with NFC chip.

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The client can also check the allergens in a product by tapping the price tag on the shelve which also has an NFC chip. It’s already the case at grocery stores such as E.Leclerc, Casino or Intermarché.

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This is also the ability to activate NFC for tickets to concerts, sports events or cinemas… we could also get the client to identify himself as a loyal customer when talking to a sales person.

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Decoding

Once again, Apple by launching Core NFC is getting into the retail’s battle in order to aggregate data, after the relative failure of the iBeacon. Therefore Apple can now have their hands on iPhone owners to target them in an optimal way for marketing purposes.

The ambition of Core NFC coupled with the conversational commerce solution Business Chat allows Apple to offer a very complete ecosystem so that retailers can engage better with their clients and provide them with a customer journey as fluide and seamless as possible.

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By opening its NFC Chip, Apple wants to multiply the usages in order to educate consumers to contactless and therefore place its payment solution Apple Pay under the light. Indeed Apple Pay has not met the success expected. Only 5,7% of the people who activated it, use it regularly… while 27% of eligible iPhone owners tried it at least once... (source pymnts.com).

Apple wants to become THE platform for connected commerce with the american market as top target. They are still pretty behind when it comes to contactless payment.

Nicolas DIACONO
Technological Trends Senior Analyst
As an expert in emerging technologies, Nicolas travels to innovation shows around the world to spot and analyse the new trends.
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