In a new global survey by ABI Research, nearly half of respondents use the term "NFC" almost daily, whether familiar with it or not. Most people use NFC (13.56 MHz RFID technology that complies with ISO 14443) for mobile payments, and some for other contactless transportation, prompt device pairing with headphones, and so on. ABI Research conducted the four-week study in April at the request of NFC Forum and published its findings last month.

The study, "Consumer Attitudes, Experiences, and Understanding of NFC Technology," found that 44 percent of the more than 2,000 people surveyed said they used contactless cards or mobile payment wallets daily or almost daily, while 82 percent said they had two or more NFC contactless payment cards stored in their wallets. Of those who have used the NFC payment system, 88 percent have positive feedback on the user experience, and 70 percent have confidence or confidence in the security of their transactions.

NFC Forum Executive Director Mike A. Mike McCamon, NFC Forum's chief executive, says NFC Forum's goal is to better understand how the technology has been used since NFC reader built-in billions of smartphones. NFC Forum hopes the study will "increase our understanding of consumer acceptance, familiarity, and the NFC experience" at the global and regional levels.

Andrew Zignani, chief wireless connectivity technology analyst at ABI Research, said: "While this survey was conducted during the COVID-19 outbreak, we focused on respondents' perceptions and use of the technology prior to the outbreak. "

About 500 of the respondents were from China, 500 from the United States and the rest from Japan, South Korea, the United Kingdom, Spain, France, Germany and Italy. Respondents were aged between 18 and 75. The survey included only those with some knowledge of contactless payments or mobile wallets.

The study found that most consumers use contactless payment systems frequently and show high acceptance and confidence. The UK ranks highest among countries using contactless payments, with 47 per cent of respondents saying they use it on a daily or almost daily rate, by China and France at 46 per cent each.

However, the researchers found that while users have a good experience, confidence, and a certain degree of familiarity with the technology, they are still unclear about the nature of the NFC solution and how it can be used except for contact payments. In fact, the survey found that respondents were more familiar with brand names such as Apple Pay, Google Pay and Samsung Pay than the word "NFC."

About half of those who use NFC for purposes other than payment use NFC technology to read labels on consumer goods (e.g., to learn more or use coupons), or for access and public transportation. Research shows that NFC is also used for click-to-connect applications, wireless charging, and automotive digital keys. Although this is the first time ABI Research has conducted such a survey for NFC Forum, Zignani said, "We've seen RFID and NFC come under widespread attention in many different areas." "

The question initially set up by the survey was "Which contactless/click payment card or mobile wallet payment solution do you use?" People who had never made contactless payments were then removed from the survey. Many of the early questions revolved around wallet payments, some of which explored people's experience with NFC technology and whether it was used outside of payment. Other issues focus on the user's perception of technical security.

The percentage of people familiar with NFC technology is staggeringly high, for example, 82 percent say they are at least a little familiar, 19 percent say they are familiar with it, and about one in five say they are unfamiliar with the technology despite its regular use, Zignani said.

Over the years, ABI Research has seen many potential applications involving contactless technologies. As the price of NFC labels falls, such labels will increasingly be used or built into consumer products to combat counterfeit products. This allows consumers to identify product labels on their smartphones to confirm the authenticity of the product. NFC-based connected products can also connect consumers to brand or product content by taping the phone.

In fact, Zignani said, "once the NFC is applied to the phone, the usage will spread out a lot." "The popularity of NFC readers in smartphones, including Apple's new read capabilities in its products, has been key to the growth of this technology. Apple Clips, which also uses NFC technology, provides new applications for systems that need access to data without the need for individuals to download and install the full application.

Another driver of NFC development is labeling costs. "The scale of NFC applications is expanding as label prices fall," Zignani said. ABI Research found that labels sold in large quantities now cost $0.05 or less. Talkin'Things, for example, recently announced the introduction of UHF, NFC and HF RFID labels with unit prices between 3 and 4 cents for fast-food, food and pharmaceutical packaging.

Since the outbreak of the COVID-19 crisis, the use of contactless technologies has increased significantly, Zignani said. At the same time, ABI Research looked at baselines prior to COVID-19 and said one sign of increasing NFC deployment during the outbreak was an increase in contactless payment applications. In October, in response to COVID-19, Visa reported that 500 million additional contactless transactions had been processed in 29 countries or regions in Europe, and that 75 per cent of all in-store Visa payments across the continent were now contactless.

In the medical field, NFC-based labeling and packaging are increasingly being used to provide consumers with product information so that they can understand specific drugs and how they are used. NFC tamper-proof labels can identify if a product has been disassembled, and some self-test kits also include NFC accessibility, which means patients can move their phones closer to the label and follow the instructions for using the label tips step-by-step. It can also provide access to test results.

In fact, some COVID-19 test kits are also starting to take advantage of NFC. For example, Smartrac, a subsidiary of Avery Dennison, has launched a digital verification solution that uses SUKU's blockchain application to certify COVID-19 test kits and personal protective equipment (PPE) through NFC-enabled smartphones.

ABI Research has also found applications such as contactless menus in restaurants that use QR codes or NFC to help diners place orders. "If a technology gives people a better retail experience, it's more likely to be recognized by the market," Zignani said. At the same time, the survey found that consumers already know about NFC's use of public transportation and pairing headphones. "I was surprised to see that," he said. The NFC has a long way to go, but the potential is huge. "

In addition, the survey found that the majority of respondents were satisfied with the inherent security of close-range transactions. Zignani believes that because smartphones offer a variety of wireless capabilities, the use of a mix of Bluetooth and UWB solutions is another trend. "Obviously, the NFC will play a role in that. The development of this hybrid solution will open up innovative applications. I think it's exciting. "

"We're working with the community to raise awareness of the 'contactless lifestyle' and how it simplifies their lives while improving security," McCaffrey said. "NFC Forum members are working to extend NFC usage beyond payment applications such as authentication, transportation, automotive, and the Internet of Things.